Recessionary indicators are upon us, but the government remains unmoved; does sweeping our problems under the flag, make everything go away?
The Automobile sector in India is facing severe down-shifts, as major players in the field report loss after loss, every financial sector. What is the reason for this sudden downfall, if it’s even sudden, to begin with?
The government remains mum on this issue, even as the GDP falls to a measly 5% (a six-year low). Is there any relief for the Automotive Industry? 3 Lakh jobs have been compromised, are we to expect more shockers on the way – more nails to the coffin of Indian manufacturing industry?
Loses All Around
MARUTI, the king of Indian auto-ownership, and the pride of more than a billion people – have reported steep declines in terms of sales. With a nearly 33% downfall, the Indian juggernaut struggles to keep its saleability afloat in this harsh economic environment. But it’s not alone – the Indian sectors of HONDA CARS INDIA have reported a 51% drop in sales! This is unimaginably severe, especially for a company that owns upwards of a quarter in terms of market share.
MAHINDRA & MAHINDRA, the boisterous one – prided on its bullet-proof status, not even a year ago. As of August 2019, it too has reported losses to its growth, as well (regardless of fresh roll-outs on the market). This is the only the cover page story, though. As every automobile manufacturer in India is left pulling their scalp in their palms, the workers are the ones hit the most due to this dip in manufacturing.
Worker Woes
Top of August ’19, 2.30 lakh jobs were turned to ash, owing to production slowdowns that had been plaguing the Indian economy for years now. Not even a month removed, 3 lakh jobs have been reported lost as of September the 1st 2019. Manufacturing plants aren’t supposed to run year ‘round; the period when a plant is shut down, workers are left unemployed. Companies like HYUNDAI and MARUTI have rolled back their ‘working periods,’ forecasting the upcoming slowdown in the process.
Nevertheless, the biggest slump in 19 years, has caused 300 dealerships in India to shut shop. Which means it’s not just the workers directly employed with automobile companies – it’s the peripheral that’s also getting affected.
A Struggling Economy
The eyes can see, but they refuse to believe. As major sectors keep on losing steam, as players thought undefeatable, fall – our revered cabinet sitting atop the parliamentary strata, brush off accountability, like dust off their elbows.
The Finance Minister, Nirmala Sitharaman, has swerved these massive upsets, and general claims of recession looming over India, as unworthy of her comment. Former Prime Mister and one of the architects of the modern Indian economy, Dr Manmohan Singh has called the current economy, and the slump it is experiencing – an act of mismanagement.
The slowdown in Automotive manufacturing is but an effect of a terrible economy being run, under a cabinet incapable of accepting, let alone fixing pressing issues. As forecasts for 2020 spell even more distress, the ‘hope’ peeking over the horizon, remains absent.
