New Delhi: The sluggishness in the economy has badly affected the auto industry. About two lakh people have been affected due to the slowdown in the sector. The Federation of Automobile Dealers Association (FADA), an industry organization, has claimed that retailers have fired nearly two lakh employees during the past three months due to a steep decline in sales. Fada said the situation is unlikely to improve in the coming future, which may lead to more showroom closures and retrenchment.

FADA Chairman Ashish Harshraj Kale said that due to the decline in sales, dealers have the option of reducing the manpower. Kale said the government should take measures like reduction in goods and services tax (GST) to give relief to the auto industry. He said, most of the sortings are now taking place in front end sales, but if the slowdown continues, technical jobs could also be affected.

About 25 lakh people have been directly employed in 26,000 vehicle showrooms run by 15,000 dealers across the country. Similarly, 25 lakh people have been indirectly employed in this area. He said, two lakh jobs have been reduced from dealerships in the last three months. Earlier, in the 18 months to April this year, 286 showrooms were closed in 271 cities across the country, losing 32,000 jobs. This sorting of two lakh jobs is also there.