India’s auto sector loses 2.5 – 3 million jobs in 2 years

In what can be called the ‘great recession’ in the auto industry in India, 25-30 lakh jobs have been lost in the past two years. These stunning but true statistics have been disclosed by Mr. Vikram Kirloskar, President of Society of Indian Automobile Manufacturers (SIAM) and Vice Chairman of Toyota Kirloskar Motor in his talk at the 37th Annual General Meeting held at the Bangalore Chamber of Industry and Commerce.

Vikram S Kirloskar, President SIAMLower growth rate, slowdown in the commercial vehicle segment and an overall gloom across the auto sector has taken a toll on jobs. The Industry employs a total of about 29 million persons right from the source of iron ore mines to company showrooms. 10% of these jobs have been lost across the industry and it is time that serious note of this situation is taken into account to avoid any additional loss of jobs which would further hamper economic growth in the country.

Kirloskar pointed out that there is huge potential in the market and India holds a strategic position. Despite these facts, there is a great divide between market India and factory India due to which potential is not fully tapped. In order to ensure better growth and development Kirloskar advises that one should not only look at low labour costs as the only means to the end but take into account quality, cost, delivery and environment which should be developed on parallel lines along with better Government policies so as to achieve favourable results.

Source Economic Times via PTI