Auto industry may witness 500k job losses in next quarter
New Delhi, August 17: Automobile sales in India witnessed its sharpest decline in nearly 19 years in July, dropping 18.71 per cent, rendering almost 15,000 workers jobless over the past two-three months as the sector reels under a prolonged slump.
As per data released by the Society of Indian Automobile Manufacturers (SIAM), vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers, stood at 18,25,148 units last month as against 22,45,223 units in July 2018. The previous biggest decline across overall domestic automobile sales was recorded in December 2000 when it fell 21.81 per cent.
While the industry is expected to face more jobs losses over the next quarter- front-end sales jobs and those related to technical, painting, welding, casting, production technology and services are primarily at risk.
âThe vehicle industry is witnessing de-growth, resulting in 100,000 job losses in the component sector over the last few months. Should this trend persist for another 3-4 months, it could lead to 1 million job losses,â Vinnie Mehta, director generalm Automotive Components Manufacturers Association of India (ACMA), told ET.
If the industry goes down, the GDP will go down as the automobile industry accounts for half of the manufacturing GDP and employs around 3.7 crore people, directly and indirectly, he added. In the PV segment, market leader Maruti Suzuki India posted a 36.71 per cent decline in its July sales at 96,478 units.
Hyundai Motor India Ltd (HMIL) also witnessed 10.28 per cent decrease at 39,010 units, while Mahindra & Mahindra posted a fall of 14.74 per cent at 16,830 units during the month. In the two-wheeler category, Hero MotoCorp registered a 22.9 per cent drop in sales at 5,11,374 units, while rival Honda Motorcycle and Scooter India (HMSI) saw sales decline by 10.53 per cent to 4,55,036 units. Similarly, Chennai-based TVS Motor Co saw its sales slump by 15.72 per cent at 2,08,489 units in July.News24 Bureau with Agencies
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