Auto Industry to Shutdown 500,000 Jobs from the Next Quarter
As the automobile industry is going through its worst scenario, it is incurring a heavy loss in monetary as well as employee terms. The $57-billion industry is expected to face more job losses over the next quarter due to slumping automobile sales. The jobs that would get affected include front-end sales jobs, technical jobs, painting, welding, casting, production technology, and services.
As per Vinnie Mehta, director-general, Automotive Components Manufacturers Association of India, Currently that industry is witnessing some major de-growth which has resulted in 100,000 jobs lost in the past few months and if the trend continues for another 3-4 months, it might lead to a million job losses. (source: ET)
The crisis has not just affected the automobiles selling companies but it has also put a major impact on the automobile component manufacturers. The monetary crisis in the automobile industry has affected mostly the Tier II-III companies that exist with a turnover of Rs. 400Cr. The slowdown hit the industry in September last year and has affected the industry in aspects involving man-hours, lay-offs, work hours and so on.
So far, the giants in their respective sectors have already implemented their rescue plans from the crisis but even they had to go through some cost-cutting that involved jobs shut down on a large basis. The tier II and III companies will desperately need a game plan to stay put in the industry and it will be interesting to watch how they plan their way out from the crisis that was never seen in decades.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.