Sales of passenger vehicles in July fell at the fastest pace in almost two decades in India. Declining sales led to significant job cuts in India’s auto sector, as many companies were forced to close their factories for days and axe shifts.
The Japanese automakers Toyota Motor and South Korean Hyundai Motor are the latest in a series of companies that have stopped production in factories to combat the decline in sales, according to memos addressed to employees.
Denso Corp’s India unit and Bellsonica, has fired about 350 temporary workers at its plant in Manesar, northern India, a source close to the international media said.
International media earlier this month reported automakers, component manufacturers and dealers had already cut 350,000 jobs.
At a meeting with the Indian Ministry of Finance on Aug. 7, industry leaders demanded tax cuts and easier access to financing for dealers and buyers to boost sales.
Hyundai, in a memo on Aug. 9, also said it would halt production for several days in August across various departments including the body shop and paint shop as well as its engine and transmission plants.
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19 September, 2019