Automobile Crisis: 3.5 Lakh Indians Lose Their Jobs In Past Few Months

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The automobile sector, which contributes more than 7 percent of the country’s GDP, is facing one of its worst conditions these days. According to the Federation of Automobile Dealers Association (FADA), two lakh people have been fired from automobile dealership stores in India during the last three months. FADA has expressed apprehension that there is no scope of improvement in this trend in the next few months. This will increase unemployment on a large scale. FADA said that the government should give relief to the automobile sector by taking immediate measures like reduction in GST.

Automobile slow down

The slowdown in the automobile sector in India continues drastically. In such a situation, it has been determined by several sources that due to the decrease in sales of cars and motorcycles, there is a large scale of job cuts in the automobile sector. Many companies are forced to close their factories and workshops. A senior industry source told media that prefatory reports estimates suggest that the vehicle manufacturer, component manufacturer, and dealers have laid off around 350,000 employees since April 2019.

Significantly, according to the Society of Indian Automobile Manufacturers (SIAM) data, vehicle sales in all segments declined by 12.35 percent in the April-June quarter and only 60,85,406 vehicles were sold, compared to the same period a year ago. 69,42,742 vehicles were sold. There is some hope in the festive season but it won’t be that much.

Most of the job layoffs are still happening in front-end sales, but if this trend of sluggishness continues, technical jobs may also be affected. The automobile sector, which is going through rough times, is also constantly losing pace and has to close automobile showrooms. Amid a sharp decline in vehicle sales, vehicle dealers across the country are showing a large number of employees the way out.

The country’s largest car manufacturer Maruti Suzuki has cut its temporary workforce by 6 percent in the last six months. Tata Motors has closed four of its plants in the last two weeks. While Mahindra has said that between April and June, there was no production in its various plants for about 5 to 13 days. Total sales of Bajaj Auto fell by five percent to 3,81,530 vehicles in July. The company itself has given information about this in a statement.