Decline in automobile Industry, 50,000 lose jobs

Updated on: Tuesday, April 07, 2009

Chennai: Economic meltdown has thrashed automobile industry to push off 50,000 employees within eight months.

Due to lame economic state the automobile sector has been struggling to stay afloat. Currently, the industry has a work force of 1.5 lakh people.The sector that generated Rs 10,000 crore per annum, has laid off about 50,000 employees within eight months.

President of the Association of Indian Forging Industry, Vidyashankar Krishnan, said . 'Business has dropped by 70 per cent during this period and there is no indication of revival in the near future.' Moreover, many existing clients make delay in their monthly and yearly payments. The sudden dip in steel prices has also paralyzed the forging sector.

The clients often demand for reduction in prices of steel which has affected industry in large.

The Government need to announce a stimulus package to lift up the industry. To prioritize the public sector banks must offer credits to the forging industry, which falls under Small and Medium Enterprises (SMEs) category, and government must increase its investment in infrastructure in such that the demand for trucks increases, boosting the demand for auto components said Vidyashankar .

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Decline in automobile Industry, 50,000 lose jobs

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