Auto Industry | Latest News
India is a country with a vast population and needs. One of the common needs of any individual is a conveyance or a mode of travel. Here comes the major role of automobile industries of India. The recent conditions in the country have to lead to downfall to the automobile industry which has affected the masses to a great extent. The major cause of this recession is cut down in the sales of the automobile. Figures show that there has been a reduction in the sales of two-wheelers as well as four-wheelers. The industry witnessed an uphill after the commencement of the Goods and Services Act (GST) but there was a massive fall in August and September because of floods in Kerala and heavy rainfall in other states. There are other reasons which have led to the decline of the industry one being the liquidity crisis which has its roots in NBFC and the defaulters in it.
The latest news trending in the sector of industries is regarding the automobile industries slowdown.
In the past few weeks, Automobile industries are going through a low phase and several companies have declared non-working days in the middle of slowing demand for automobiles. Many companies like Maruti Suzuki , Tata Motors and Ashok Leyland have increased the number of non-working days.
According to the statistics that were released by the society of Indian automobile manufacturers there had a sharp fall in demand in auto sector.
Let’s have a brief look into what non-working days is all about. In Business Terms, Non-working day is just a holiday without pay and also it affects to workers who are not directly on the company’s payroll but those workers get daily wage on the basis of their contract. These workers who are facing a tough time are earning around Rs 6000-8000 per month.
The companies have declared non-working days due to the decline in the sales of automobiles.
In August the, auto sales dipped to the lowest level. The sector has already lost over three lakh jobs and it could lose up to a million jobs if the government fails to revive demand.
No Slowdown in Auto Industry
But according to the latest news from trader CAIT on Tuesday, there is no slowdown in the domestic automobile sector and industries are making a public outcry to get packages from the government.
The auto sector is allocating the sales dip to many factors like high GST rates, stagnant wages, and liquidity constraints.
According to CAIT secretary general Praveen Khandelwal “there is no slowdown in automobiles sector “ by stating an example of a recently launched automobile, he said companies have received a massive number of bookings which indicates no slowdown in demand.
In addition to this Khandelwal demanded immediate ban on the mega sales offered by e-commerce sites like Amazon and Flipkart.
Because according to him these are violating the foreign direct investment (FDI) norms in the e-commerce sector. And if the Government didn’t take action against it , we would approach the court , stated by him. He also added that these e-commerce companies are not only allowed to do B2B business but they are also indulging in a big advertisement campaign.