NEW DELHI, 24 JUNE: With car and vehicle sales continuing to reel under a prolonged slump, fresh hiring of employees has been frozen in India’s automobile sector while layoffs loom large.
According to industry bodies Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA), with the demand continuing to be low and factories not operating at full scale, this may lead to temporary excess overheads.
“What is coming out is that laying off may not have started but recruitments in many companies have been restricted,” SIAM deputy director general, Mr Sugato Sen said.
Expressing similar sentiments, Rico Auto Industries chairman, CEO & managing director, Mr Arvind Kapur said: “At the moment there are no fresh investments taking place in the (component) industry and hence there is no new hiring.”
When asked if there would be layoffs, he said: “It is a difficult situation as you invest a lot in training people and they cannot be done way with just like that. pti