INSUBCONTINENT EXCLUSIVE:
two of India's biggest automakers, on Friday said they would cut production at some plants in response to slowing demand that industry
executives say has driven the sector into one of its worst downturns
The slowdown in the sector has triggered massive job cuts, with initial estimates suggesting that automakers, parts manufacturers and
dealers have laid off about 3.5 lakh workers since April, a senior industry source told news agency Reuters earlier this week
Here are the top 10 points in this big story:Tata Motors, which had previously flagged a "challenging external environment",
said it closed some blocks at its Pune plant in Maharashtra
The company, India's top automaker by revenue, had last month posted a bigger-than-expected quarterly loss due to weak conditions at home
and problems at its British luxury car unit.Mahindra and Mahindra said on Friday its automotive segment, which makes passenger and
commercial vehicles and spare parts, would cut production for 8-14 days at various plants during the second quarter.The crisis has also hit
smaller auto parts makers like Jamna Auto Industries Ltd
The company, whose customers include Tata Motors, General Motors and Toyota Motor, said on Thursday it might shut all its nine plants in
August due to weak demand
Auto components manufacturers Bosch Ltd and Wabco India Ltd have already trimmed production amid the demand slump.Slumping sales of cars and
motorcycles are triggering massive job cuts in India's auto sector, with many companies forced to shut down factories for days and axe
Initial estimates suggest that automakers, parts manufacturers and dealers have laid off about 3.5 lakh workers since April, Reuters
reported this week.The downturn - regarded by industry executives as among the worst suffered by the Indian auto industry - is posing a big
challenge for Prime Minister Narendra Modi in his second term at a time when India's jobless numbers are climbing.To revive the sector,
which contributes more than 7 per cent to India's GDP or Gross Domestic Product, auto executives have called for tax cuts and easier
access to financing for both dealers and consumers.Passenger vehicle sales have dropped for nine straight months through July, with some
automakers suffering year-on-year declines of more than 30 per cent in recent months.Experts say that the fallout from the auto slump could
be huge since the sector employs more than 3.5 crore people directly and indirectly, accounting for nearly half of India's manufacturing
output.Maruti Suzuki, India's biggest carmaker, cut its temporary workforce by 6 per cent over the past six months.India's jobless rate
rose to 7.51 per cent in July 2019 from 5.66 per cent a year earlier, according to private data group CMIE
The CMIE data is more up-to-date than government figures and regarded in financial markets as more credible.(With inputs from Reuters)Get
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