New Delhi: A massive slowdown led by truncating demand has forced the entire value-chain operators across the automobile industry to reduce production levels and downsize workforce to tide over lean times. Specifically, the slowdown has impacted the employment prospects in the auto cluster of Gurugram-Manesar, home to automobile majors such as Maruti Suzuki, Hero MotoCorp and Honda Motocycle & Scooter India.
At present, the automobile industry has been dented the hardest by the slowdown which is a culmination of several factors like high GST rates, farm distress, stagnant wages and liquidity constraints. Besides, inventory pile-up at the dealership level and stock management of unsold BS IV vehicles have become a problem for the sector. The sales downturn assumes significance as the auto industry contributes to half of manufacturing GDP and 11% of the total GST revenues.