Mumbai: With the deepening crisis in auto sector, which has seen the worst volume plunge in two decades in July, independent HR industry feels the maximum impact will be on temporary workers followed by service roles in sales & marketing along with R&D as OEMs are forced to cut production. While media reports say the sector has already culled 3.5 lakh jobs since April, the national OEM body Siam said at their level itself more than 15,000 jobs were laid off this fiscal, and thousands lost their livelihood at the dealerships side where hundreds of them have been shuttered.
The Automotive Component Manufacturers Association had last month warned that of 1 million potential job losses and called upon the government to do something urgent to arrest the deepening slowdown. The sector employs over 35 million, directly and indirectly and accounts for nearly half of the country's manufacturing output.
The auto sector has been on a downhill since the past 18 months or so after the government flip-flop on ICE engines and the push for electric mobility without any policy or financial support. Slowdown in the auto sector is a global phenomenon and India is no exception and companies are leveraging the flexibility available at their hands like cutting down/shuttering plants temporarily to minimise their cost, CIEL HR Services CEO Aditya Narayan Mishra said.
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