Economy in crisis: 10 lakh people may lose job in automobile sector

Due to a continuous decline in demand and lack of clarity on electric vehicles (EVs) policy prepared by the Modi government, nearly 10 lakh people working in the automobile sector are on the verge of the losing their job, says a report.

According to the report published in Reuters, if such trends continues, the automobile sector, which accounts for nearly half of India’s manufacturing output, would be forced to slash a fifth of its 5 million or so workforce.

As per the report, the slump in the auto sector has been a major factor behind the down sliding of the economy.

“India’s auto industry is in the middle of one of its worst slumps. Passenger vehicle sales fell 18.4% in the first quarter, and monthly passenger vehicle sales in June fell by the biggest margin in 18 years,” says the report.

The slump – which reached a five-year low earlier this year – has prompted automakers to cut production and automakers and parts-makers to cut jobs.