India's economy suffers car crash, pain spreads to villages

MANESAR, India - The narrow lanes in Aliyar and Kasan villages in Manesar, an automotive manufacturing hub on New Delhi's southern outskirts, would usually be packed on Sundays with migrant workers employed at the nearby plants enjoying their day off. Not anymore.

These are hard times for an area dependent on the fortunes of companies like Maruti Suzuki, the carmaker with the largest market share in India, and motorbike maker Honda Motor Co's local unit. The auto and component makers in and around Manesar, have shed thousands of jobs.

Nationwide, according to industry estimates, automakers, component manufacturers and dealers have laid off about 350,000 workers since the start of the year, in response to plunging car sales. Figures for August, like July, are expected to show a drop of more than 30 percent, making a 10th straight month of decline.