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

Discussion in 'General Discussions' started by armummy, Aug 13, 2019.

  1. Thyagarajan

    Thyagarajan Finest Post Winner

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    :hello: 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.
     
  2. nemesis

    nemesis Platinum IL'ite

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    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.
     
  3. armummy

    armummy Platinum IL'ite

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    Hopefully some concrete steps will be taken by govt to improve the situation ... with us and China trade war things will go more south ....
     
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  4. armummy

    armummy Platinum IL'ite

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    Oh ok ok all of upwardly mobile ,brand conscious youngsters changed their mind on automobiles, buying homes and marriages since last five years . Kind of unbelievable no .....even if we think this is the case , you can expect a little slump not a 20 year lowest growth in sales ..

    Real estate , at least in my experience I have seen my younger colleagues buying homes very early in their careers ....

    I think they also stopped depending on jobs probably ... enterprise should be booming now ....
     
    Last edited: Aug 14, 2019
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  5. nemesis

    nemesis Platinum IL'ite

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

    just saying.
     
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  6. armummy

    armummy Platinum IL'ite

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    Why not .... politics get involved because the policies of political parties result in upward swing or downward swing
     
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  7. armummy

    armummy Platinum IL'ite

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    India behind UK, France as 7th largest economy in the world in 2018: World Bank


    This is few days back news ... but obviously some serious thinking needs to be done on why things are going south ...
     
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  8. Agathinai

    Agathinai Silver IL'ite

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    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.
     
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  9. armummy

    armummy Platinum IL'ite

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    Yes very hard time for industry ..... govt should come out with some well researched stimulus package to boost it. I guess anand mahendra who is a vocal supporter is asking for less gst and cess ....

    Encouraging EV is good for the long run but support should be there for normal automobile sector too ....
     
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  10. armummy

    armummy Platinum IL'ite

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    Also anyone knows if reliance selling some stake to Armaco is good or bad ... I am reading mixed reviews ...some say good and some say bad indicator ...

    Also armaco says it is still early stages while we read in news reports it as done deal
     

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