Auto Crisis in India: Witnesses Massive Job Losses

The Indian automobile sector is going through a tough and hard time. The companies are reporting decline in their sales numbers month after month. This, in turn, is having adverse effects on the jobs as well. The domestic passenger vehicle industry has recorded its worst performance in the past two decades in July, continuing the downward trend for nearly a year. Sales of commercial vehicles and two-wheelers have also been hit. A series of factors including higher insurance costs, volatile stock markets and a liquidity squeeze in a slowing economy have slammed demand for new vehicles.

Maruti Suzuki India reported a sixth consecutive montly sales decline with the numbers falling 33.5 per cent 1,09,264 units in July 2019. Hyundai Motor India sales fell 3.8 per cent to 57,310 units during the month, while the domestic sales of Honda Cars India dived 48.67 per cent to 10,250 units. In July 2019, Mahindra & Mahindra registered a plunge of 15 per cent in total sales to 40,142 units and Tata Motors saw its sales going down by 34 per cent to 32,938 units.

The two-wheeler manufacturers are too facing a difficult situation. During July 2019, the sales of TVS Motor Company fell 13 per cent to 2,79,465 units and Royal Enfield sales dropped 22 per cent to 54,185 units. Hero MotoCorp sales dived 21.18 per cent to 5,35,810 units and Honda Motorcycle and Scooter India numbers plunged 10.77 per cent to 4,89,631 units.

“The most obvious and welcome first aid would be some temporary relief on the GST front, either by modifying the slabs, or, if that is not possible, by removing the cess" said Mahindra Group chairman Anand Mahindra.

The post Auto Crisis in India: Witnesses Massive Job Losses appeared first on NewsCrab.

Source : newscrab

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