Indian Automobile Industry Sees Slump, At Least 5,000 Workers Lose Jobs

Guwahati, August 18, 2019:

The Indian Automobile Industry in the country has slumped over the past few months, which has resulted in a slower rate of production across the country.

At least 5,000 contract workers were fired in the automobile sector in Tamil Nadu, which is considered to be the ‘hub’ of automobile manufacturing in India.

Centre of Indian Trade Unions (CITU) president, Tamil Nadu Chapter A, Soundarrajan told The News Minute that at least 5,000 contract workers were laid off as a result of slowdown in production.

He added that due to the declining demand for vehicles, the automobile giants were letting go off contract employees and reducing the number of working days.

India’s automobile segment is witnessing loss following drop in the sales. As per a latest statement by TVS Motor Company, sales have dipped to 2,79,465 units in July this year as opposed to 3,21,179 units in July 2018. Scooter and motorcycle exports have also been affected.

Maruti Suzuki India Ltd (MSIL), the largest car manufacturer in India, has also fired over 3,000 contract employees following the slump in India’s auto industry.

Around 286 manufacturers have shut down and 2.3 lakh people (approx.) have lost their jobs in this segment.

The automobile industry is considered to be the largest employer of the country. Carmakers like Hyundai, Nissan, Daimler, BMW, Yamaha, TVS and other manufacturers, who are allied to the industry, run their operations in India, Tamil Nadu being the preferred location for their manufacturing units.

Firing of employees has therefore become a major concern across the country. Following the decline, automobile manufacturers have, reportedly, requested the Tamil Nadu state for concessions including reduction in Goods and service tax (GST) from 28 percent to 18 percent; phasing out diesel vehicles which are over 10 years old and petrol vehicles which are over 15 years old, and reduction of registration cess.

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