Slowdown in Automobile Sector Threatens Thousands of Jobs

The condition of India’s automobile sector is suffering at this time, due to this recession, many people working in this sector may have to lose their jobs. The effect of this has already started showing, many automobile sector vendors are forced to close their factories, due to which many people working in this sector are being shown the way out of jobs. A senior source told the news agency Reuters that since April, nearly 350,000 employees of automakers, suppliers and dealers have been evacuated.

Earlier data showed that car and motorcycle manufacturers fired about 15,000 employees, while component makers hired 100,000. The rest of the jobs that were cut happened at the dealers, many of whom have been closed. Industry officials termed this as the worst situation for the auto mobile world, while there is a big challenge for the Modi government as the number of unemployed people in the country is increasing rapidly when the Modi government was starting its second term. was. In the automobile sector meeting with the Finance Ministry, its executives sought to reduce tax and easy access to financing to both consumers and dealers.

The impact of the recession is so widespread that Valeo and Subros, the French manufacturer of Japanese motorcycle makers and parts manufacturers, laid off 1,700 of their employees after sales declined. Subros, which owns Japan’s Denso Corporation and Suzuki Motor Corporation, laid off 800 employees. At the same time, VG Koshiko, the maker of Indian parts, fired 500 people. Yamaha and Valeo fired 200–200 employees last month.

In the midst of slowing demand, Honda Motor Co., Tata Motors, Mahindra & Mahindra have postponed production for a short time. The automobile sector accounts for 7 percent of GDP and is facing its worst decline ever. Has been doing. The automobile sector in India directly and indirectly employs 35 million people. According to a private data group, the unemployment rate rose to 7.51 percent in July 2019 from 5.66 percent a year earlier.