The auto industry in India is going through a major turmoil as the sector is facing its biggest slowdown in nineteen years. In July 2019, the sale of vehicles across categories in the country slumped 18.71% to about 18.25 lakh units, down from 22.45 lakh units, a year ago in the same month. On the one hand, the numbers of cars are increasing while on the other hand, the numbers of jobs are going for a toss in this sector. This slowdown has created havoc among the people working in this sector because the auto industry in India supports around 3.7 crore direct and indirect jobs and contributes over seven percent to India's GDP and nearly fifty-percent to the country's manufacturing GPD.
According to, Vishnu Mathur, Director General of the Society of Indian Automobile Manufacturers (SIAM), the auto industry has witnessed 3.45 lakh job losses due to the slowdown. Nearly 300 dealership outlets have shut, resulting in 2.3 lakh people losing jobs. The auto component manufacturers are reporting the loss of almost one lakh jobs while original equipment manufacturers have sacked 15,000 workers,"
The Federation of Automobile Dealers Associations (FADA) also mentioned that around two lakh jobs have been cut across automobile dealerships in India in the last three months as vehicle retailers take to reducing manpower to tide over the impact of the sales slump.
FADA added that with no immediate signs of recovery, the job cuts might continue with more showrooms being shut in the near future. The body has direct government intervention such as reduction of GST to provide relief to the auto industry.
This story is from the September 2019 edition of People Matters.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 2019 edition of People Matters.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How Digital Transformation Can Power The Great Reset
Technology has the potential to serve as the key enabler of change between digitalising administrative tasks and fostering human connections
The Crypto Meltdown Of 2022
FTX implosion: A setback, but not the end for the crypto market
Govern Pre-IPO Unicorns to Create Value; Not Valuation
Billion-dollar startups always make the headlines. But is there true value behind those eye-catching valuations? How can proper governance be implemented for these much-hyped companies?
On change and change management
The best way to end the year, especially such a disrupted one as 2022, is by laying the groundwork for the year to come. Michelle Yong, Head of Resourcing at Shell, offers some insights on change management to bring us forward into 2023
The Great Reconnection: A paradigmatic moment for employers and employees
This year has not been a good one for employee retention. The Great Resignation, originally thought to be a US phenomenon, has emerged in Asia now. But is there a way to turn it into the Great Reconnection?
Lessons Managing in leadership: a global hybrid team
What takeaways can we draw from the pandemic? Fatima Koning, Chief Commercial Officer at IWG, shares what the last five years have taught her about managing a global sales team across 120 markets in the hybrid model
Eight HR trends that we saw throughout 2022
As companies manage their workforces in a dynamic era, HR departments have continually adapted and adjusted, and never more than this year as digital acceleration and workplace evolutions came together
One way to turn the tide of employee retention
There's a surprising link between skill development opportunities and job satisfaction. Here are some ways of boosting skilling and thereby talent retention
A key focus for L&D going into 2023 should be business alignment
Venkat Subramaniam of Degreed believes that learning is core to business success and organisations need to invest in the right processes and technologies to adapt to continuous change
WOMEN IN LEADERSHIP CAN BE GAME GHANGER FOR INCLUSIVE FUTURE OF WORK
BREAKING FREE FROM THE STEREOTYPES IN THE INSURANCE SECTOR, PAMELA THOMSON-HALL SHARES HER JOURNEY OF BEING A CHAMPION FOR WOMEN AND BRINGING ABOUT A CHANGE IN A MALE-DOMINATED INDUSTRY
