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Job cuts across automobile dealerships

According to the Federation of Automobile Dealers Associations (FADA), around two lakh jobs have been cut across automobile dealerships in India in the past 3 months. These dealerships are compelled to hand out pink slips in order to weather the impact of the unprecedented plunge in vehicle sales. The industry body is apprehensive that this trend could continue as more vehicle showrooms are shut down in the near future.

“Right now, most of the cuts which have happened are in front-end sales jobs but if this (slowdown) continues, then even the technical jobs will be affected because if we are selling less then we will also service less, so it is a cycle,” opined FADA President Ashish Harsharaj Kale. The agency recommended that the government should reduce GST to provide relief to the auto industry.