Bloodbath In Automobile Sector: 2 Lakh Employees Fired By Car Dealers In Last 180 Days
2019 is the worst year for the automobile sector in India.
More than 2 lakh employees have been fired by auto-dealers in the last three months, and the reason is a slowdown in car sales.
We have already reported that Maruti has fired their temporary employees, for the first time in their history.
And Tata Motors has temporarily shut down their factories, due to the same reason.
We have already asked this before, and again, we are questioning: When will Govt. intervene to save the industry?
2 Lakh Employeed Fired By Auto-Dealers
Federation of Automobile Dealers Associations (FADA) has informed that there is a bloodbath going on currently in the automobile sector, and some drastic measures are immediately required to save the industry.
As per FADA President Ashish Harsharaj, more than 2 lakh employees have been fired by automobile dealers across India, due to low sales. These jobs were primarily front-facing and customer-serving.
Soon, technical jobs will also be reduced, as due to low car sales, there will be no cars to be serviced.
He said, “It is a guesstimate that our members have already cut 7-8 per cent of the jobs in most of the dealerships as the degrowth has been very high,
As per FADA, 25 lakh people are employed via 26,000 automobile showrooms, handled by 15,000 dealers, across the country.
Till April this year, 286 showrooms were closed down, across 271 cities, and this resulted in mass layoffs of 32,000 employees,
But since April, the situation has deteriorated beyond any calculations, and 2 lakh employees have lost job, between April to June.
Passenger Vehicles Worst Hit, Maruti, Tata Severely Impacted
As per data released by Society of Indian Automobile Manufacturers (SIAM), overall vehicle sales are down by 12.35%, only 60,85,406 units were sold in the April-June against 69,42,742 units in the same period last year.
In July, Maruti reported a whopping 36.3% drop in sales, whereas Tata Motors reported 38% drop in sales.
Both Maruti and Tata witnessed the heaviest drop in sales in the passenger segment.
FADA and other automobile associations want reduction in GST as an immediete measure to help survive the automobile industry.
Ashish said, “It is not a permanent demand. We know GST is such a huge developmental agenda for the government, but at the same time (it is needed for) reviving the auto industry. We (auto industry) are almost 8 per cent of the GDP and 49 per cent of manufacturing GDP,”
We will keep you updated, as more details come in.