Auto Sector Crisis: 2.30 Lakh Jobs Lost As Industry Faces Worst Crisis In 20 Years

Comparison of recently announced data of RBI,
CMIE’s CPHS & CMIE survey reflects divergent findings on spending power of consumers on durables but declining trend in auto sector. Auto sales dipped for all segments put together 19 % since budget announcements. Lay of on the cards. Wheels India announced cost cutting measures already. The sector as a whole is in doldrums . And with it the stock market.

2. Only redeeming feature seems to be huge foreign order secured by Ashok Leyland. Shares of this company going cheap now. But no big and small auto company as yet announced huge lay off of or retrenchment.

3. Worldwide it is expected growth will take a down trend, more job losses not to speak of any creation of jobs. It is anticipated, cascading effect in negative growth all sectors of economies around the globe both developed and under developed.

4. Tax sops in auto might be a pittance but may not give me h needed fillip or the prop.

Thanks to world governments for their foresightedness in ruining the economy of white and blue collar.
Thanks and Regards.

 

There is a marked change in perceptions and behaviors of the current generation kids. None of them are interested in driving (stress yo!); instead, uber/ola is a verb now.

Preference is about experiencing anything over owning it; (a la live in relationships over marriage).

This is detrimental to businesses like automobiles and real estate who think past performance will be sustained in future.

 

If you could knock off that political overtones in every thread, some meaningful exchange might be possible.

just saying.

 

I read few things about this. Firstly general fall in demand. This might be multifactorial. Insurance, tightening of the financial institutions for loans are some factors. Secondly the automobile industry were faced with new norms for anti emission concerns. This required them to change their technology from BS IV to BS VI. Whilst they were trying to implement that then came the third issue. India had issued that the vehicles have to be electric driven and even given their vision to increase such vehicles by 2025. These are some things which I understood. It is hard time for the industry.