Electrification, technological shift and the advent of shared mobility, many reasons have caused the auto industry in India to suffer. The year 2019 saw companies in the sector struggle to save costs. The sector witnessed lakhs of job losses. The scenario seems to continue even this year as Bosch announces its plan to cut thousands of job in India.
As per the report, about 10 percent of 3,700 white-collar jobs and a slightly higher percentage of 6,300 blue-collar jobs will be shed.
Soumitra Bhattacharya, India Managing Director, Bosch said, "There is a transformation happening across the industry. We looked at that as an opportunity to transform the company even before the downturn started."
The job cuts come in as the Indian unit of the world’s largest auto-parts supplier, plans to join its parent, Robert Bosch GmbH.
Bosch India’s profit fell 66 percent in the quarter ended September 30, from a year earlier. Further, the share price dropped 22 percent last year. Before the situation gets out of control, the leaders want to work in getting the company back on track. To minimize the negative implications of the various factors driving the sector currently, and to convert it into an opportunity, the company is looking to restructure.
While the year 2019 was slow for the sector, Bhattacharya expects the demand for internal combustion engine (ICE) vehicles leading growth in the auto industry in India. He predicts that 80 percent of the vehicles will run on ICE the rest on electric by 2030 in the nation. How does the German manufacturer make most of this opportunity is to look forward to. While on one hand the company might be cutting jobs, but, on the other, it would also need to nurture its talent to cope with the technological and other changes driving the sector.