By: Talat Mohsin
Tamil Nadu, one of the top 10 automobile hubs in the world, is facing a massive auto industry crisis due to dipping of vehicular demand in the country. Around 5000 contractual employees have been retrenched till now in the state due to this unprecedented slowdown.
The major causes of these slowdowns have been determined as Indian government’s policies and the global economic slowdown. This slowdown has also resulted in the decrease in production all over the state. Major companies like Nissan, Hyundai, BMW, Daimler, Yamaha and TVS have their bases in the state. Because of it’s scale, the industry is one of the biggest employers in the state and the slowdown has raised a storm for the common people.
While the sales of TVS motor companies was 321179 units in July 2018, this year the sales was only 279465 units.
Hyundai has had no retrenchments till now, but there are indications that the situation will change for the worse.
This July turned out to be the worse for the auto sector as they hit their lowest mark in sales in 19 years all over India. The sales fell by 31% to 200790 vehicles last month from 290931 units a year earlier.