The continuous decline in sales in the automobile sector and has put OEMs, Component manufacturers and the dealers under tremendous financial pressure leading to downsizing of their employee strength. The consumption slowdown in all segment viz cars, commercial vehicles, 2-wheelers, construction equipment, tractors etc. is forcing the companies to cut down production. Such a scenario will eventually lead to job losses at both factory and retail levels.
Currently, the hardest hit is the non-permanent employees working at the equipment manufacturer (OEM) but it is slowly going to start affecting at vendor and dealers level too as the bottom lines continue to erode in absence of good sales volumes.
As per Sridhar of Grant Thornton, if the automobile sector does not revive then there is a huge possibility of jobs losses across the supply chain which, includes OEM, component manufacturers and dealer network
What industry needs immediately is a GST cut on parts and vehicles to make it competitive so that the prices come down and also government needs to do its bit to provide stimulus to the struggling Automobile Sector which contributes to 11% of GST revenues of the government. As per estimates, approx. 60 million direct and indirect jobs are linked to the auto sector and are among one of the lifelines of the Indian economy.
autojobs4u.com is in the process of reaching out to the apex body of the auto sectors like SIAM and FADA to take inputs on how it can help those losing jobs. Remember that autojobs4u.com is the only dedicated job portal in India, which is committed to providing ideal jobs to millions of existing and new users in the automobile sector.
As reported by autojobs4u.com in its earlier blog, almost 286 dealerships have shut operations in the last 18 months leading to huge job loss in the sector. We at autojobs4u.com urge the automobile community (both companies & employees) to come and be a part of the online job platform and let us fight this battle together.
The automobile sector has witnessed one of its worst performance, with sales declining by 12.34% during June 2019 to 1,997,952 units across segments and categories. This low sale has resulted in 12.98% reduction in production during June 2019 to 2,336,138 units across segments and categories which is not a good sign for the jobs market.
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Image Source: Business Standard.