Deepening of the Auto Crisis in India, Thousands lose their Jobs

Deepening of the Auto Crisis in India, Thousands lose their Jobs

The decrease in the sales of cars as well as motorcycles has been triggering great job cuts in the auto sector of India, where many companies were forced to shut down their factories for many days and axe shifts. The cull was so extensive that a senior industry source said that the initial estimates suggested that the automakers, parts manufacturers and the dealers have let go of about 350,000 workers since April.

Manufacturers of cars and motorcycles have laid off fifteen thousand and the component manufacturers hundred thousand with the remaining of the job losses at dealers, most of which have been closed.

The downturn which was regarded by the executives of the industry as the worst one that was suffered by the auto industry of India, has been posing a massive challenge for the government of Prime Minister, Narendra Modi as they started their second term at a time when the number of jobless people in India are greatly increasing.

A senior industry source said that for reviving this sector, auto executives have planned to demand cuts in taxes and the easier accession to financing for the dealers as well as the consumers at a meeting with the officials from the finance ministry of India that was scheduled for Wednesday.

The plight of the industry was highlighted by the Automotive Component Manufacturers Association of India (ACMA), and the director-general of the trade body, Vinnie Mehta, said that the sector was going through a recessionary phase.

The malaise has been continuing to spread throughout most of the industry, in terms of both, the vehicle type and the components in the manufacturing hubs of India.