Amid Indian automobile sector witnessing a rough patch at the moment, Mahindra and Mahindra Ltd (M&M) said on Wednesday it saw a “huge danger” of job losses. M&M in a statement said that it was only able to maintain margins due to falling commodity prices and the government must reduce the goods and services tax (GST) rate to spur demand.
There’s no denying that month after month, the companies are reporting decline in their sales numbers. This, in turn, is having adverse effects on the jobs. The automobile dealerships across India have cut nearly two lakh jobs in the past three months, with the Federation of Automobile Dealers Associations (FADA) fearing that the trend may continue with more showrooms being shut in the near future
In July 2019, Mahindra & Mahindra registered a plunge of 15 per cent in total sales to 40,142 units. Hyundai Motor India sales fell 3.8 per cent to 57,310 units during the month, while the domestic sales of Honda Cars India dived 48.67 per cent to 10,250 units. The two-wheeler manufacturers are facing a difficult situation as well.