"Soon 10 Lakh People Could Lose Their Jobs!" Say Experts!

India’s auto components industry including technical, painting, welding, casting, production technology and services might face a severe downfall over the next quarter and around 1 million workers might lose their jobs, industry players said.

“The vehicle industry is witnessing de-growth, resulting in 100,000 job losses in the component sector over the last few months. Should this trend persist for another 3-4 months, it could lead to 1 million job losses,” Vinnie Mehta, Director General of Automative Components Manufacturers Association of India (AMCA), was quoted as saying by The Economic Times.

Mehta further said that Tier II and III companies with a turnover of less that Rs.400 crore are the most affected. After laying off unskilled and semi-skilled employees, the companies have started planning to recuce the staff strenghth among contractual employees.

According to Ram Venkataramani, President, AMCA, the downfall began in last September. “About 15% reduction in man-hours, including actual lay offs and reduction in work days/hours, has taken place since September 2018 till date.” He further said that another 15% might get laid off over the next quarter.