About 350,000 workers in India's automotive industry have been laid off since April amid declining sales and production cuts, Reuters reported Aug. 6, citing people familiar with the matter.
Of the figure, motorcycle and automobile manufacturers reportedly laid off around 15,000 workers while component makers dismissed 100,000 staff. The rest of the job cuts were at dealers, Reuters said, adding that many of which have closed.
The report said Japanese motorcycle maker Yamaha Motor Co. Ltd. and auto-parts makers Valeo SA and Subros Ltd have laid off about 1,700 temporary workers in the country after automakers continued to report declining sales in India. Indian vehicle-parts maker Vee Gee Kaushiko has also reportedly cut 500 jobs.
Society of Indian Automobile Manufacturers Director General Vishnu Mathur also said that about 15 automakers in India have cut at least 7% of the temporary jobs in recent months, Reuters reported. Maruti Suzuki India Ltd., for instance, has reduced the average hiring of temporary workers in the first six months of the calendar year by 6%.
Meanwhile, carmakers including Tata Motors Ltd., Mahindra & Mahindra Ltd. and Honda Cars India Ltd. reportedly took brief production cuts recently over the slowdown in sales.
Top vehicle manufacturers in the country saw their sales plummet in July. Maruti Suzuki posted a 33.5% year-over-year decline in total vehicles sold, while Tata Motors reported a 34% year-over-year drop in domestic sales. Honda India's sales also plunged 48.6% during the month, while Mahindra & Mahindra's overall sales fell 15%.
Toyota Kirloskar Motor Pvt. Ltd.'s total July sales went down by 22%, while Hyundai Motor India Ltd.'s domestic sales also fell 10% during the period.
To address the crisis, executives in the industry plan to approach India's finance ministry for tax cuts, as well as to explore ways to ease finance for both dealers and consumers, the report said.