By: Talat Mohsin

Amidst the auto industry slowdown in India, an estimated three lakh and fifty thousand people have lost their jobs due to layoff. India is the fourth largest automobile market in the world, but the sales slowdown has caused India to have a major labour crisis. The auto industry contributes more than 7% of India’s GDP.

This slowdown has resulted in the job losses on the level of automakers, dealers, suppliers and other organised levels. The auto industry in India had been under pressure for a year. Several companies have been forced to shut down their factory for days and axe shifts.

• Maruti has cut up its temporary workforce by 6% over the last six months.
• Tata motors had a week long shutdown in four of its plants in the last two weeks.
• Yamaha motors and auto component makers like valio have laid off about 1700 temporary workers.
• Wheels India can possibly cut its temporary workforce by 800.

This was just a glimpse in the problems faced by the auto industry. The Automotive Component Manufacturing Association Of India had previously said that the country’s auto plants industry could be forced to cut 10 lakh jobs if the slowdown in vehicle sale continues.

This slowdown has emerged to become a massive problem for Prime Minister Narendra Modi as unemployment among Indians is increasing substantially in his second term. Earlier this year, it was reported that India’s unemployment rate stood at 6.1% in FY18, some even saying that it is the highest rate of unemployment seen by the country in the last four decades. The unprecedented auto crisis has certainly added more to the challenges faced by the Modi Government.

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