Hundreds of thousands losing jobs as India’s auto crisis deepens, Latest Business News - The New Paper

Hundreds of thousands losing jobs as India’s auto crisis deepens

This article is more than 12 months old

NEW DELHI: Slumping sales of cars and motorcycles are triggering massive job cuts in India's auto sector, with many companies forced to shut down factories for days and axe shifts, sources said.

The cull has been so extensive that one senior industry source told Reuters that initial estimates suggest that automakers, parts manufacturers and dealers have laid off about 350,000 workers since April.

Within this previously unreported figure, car- and motorcycle-makers have laid off 15,000 and component manufacturers 100,000, with the remaining job losses at dealers, many of which have closed.

Reuters was able to identify at least five companies that have recently cut or plan to cut hundreds of jobs, mainly from their temporary labour force.

To revive the sector, auto executives plan to demand tax cuts and easier access to financing for both dealers and consumers at a meeting with officials from India's Finance Ministry scheduled for yesterday, the industry source said.

Japanese motorcycle-maker Yamaha Motor and auto components-makers including France's Valeo and Subros have laid off about 1,700 temporary workers in India after a slump in sales, sources said.

Subros, which is part-owned by Japan's Denso and Suzuki Motor, has laid off 800 workers.

Indian parts-maker Vee Gee Kaushiko has cut 500 people while Yamaha and Valeo last month reduced their workforces by 200 each, said several sources. - REUTERS