The spectre of large scale job losses looms over the domestic automobile industry, as a prolonged slowdown in demand for cars, two wheelers, trucks and buses is forcing companies to reduce shifts at their factories and align production with the falling demand, Hindustan Times reported.
Car market leader Maruti Suzuki said last week that it has asked 200 temporary workers at its fully-owned subsidiary Suzuki Powertrain India Ltd (SPIL) to go on leave. SPIL manufactures petrol and diesel engines for the carmaker, and Maruti said it has stopped one shift at the diesel plant in view of the falling demand.
The article quoted Vishnu Mathur, director-general, Society of Indian Automobile Manufacturers (SIAM) as saying, “The scenario is getting worse every month. So far we have not heard of companies deferring their investment plans, but hiring has stopped, and already temporary workers are being asked to go on leave. In an industry where demand is dictated by seasonality this does happen, but we do not know when growth will return, so it may get even worse.”
Read the HT report here