The automobile industry is currently reeling under the worst recession. This is the first time in two decades that the industry has faced such a recession. Earlier in 2000, the automobile industry faced an even greater slowdown. The slowdown has forced more than 3,000 temporary employees of the country's leading carmaker Maruti Suzuki to lose their jobs.
In a statement, Maruti Suzuki India President RC Bhargava said that the temporary employees' contract was not renewed due to the slowdown. At present, it has no impact on the permanent staff. Talking to some private TV channels, he said it is a business part. When demand increases, contract employees are hired and contract employees are reduced when demand decreases.
Bhargava was answering the question of whether the current recession and production cuts have led to job cuts in Maruti. He said Maruti Suzuki has lost nearly 3 thousand temporary employees. He said the automobile sector generates a lot of jobs in the economy. Low automobile sales in sales, service, insurance, licensing, financing, accessories, drivers, petrol pumps, transportation, etc. will affect jobs in a big way. He said it is not even imagined, it will have more impact.
Asked if the industry had made some gains in terms of sales in July, he said that the third or fourth quarter of this fiscal may show some positive growth in the industry. He said there will be some changes in fy 2021. Commenting on expectations from the upcoming festive season, he said that good monsoon sits could lead to an increase in rural sales.