40,000 auto jobs lost in the city

Due to the ongoing economic slowdown, Pune auto industry leaves thousands of people jobless in just a year's time

40,000 auto jobs lost in the city

Due to the ongoing economic slowdown, Pune auto industry leaves thousands of people jobless in just a year's time

The auto industry in Pune, one of the largest in the country, has been badly hit by the economic slowdown. The number of people losing jobs in this sector is alarming.u00a0
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According to Nitin Bankar, secretary of the Pimpri Chinchwad Small Industries Association (PCSIA), in the last year, 40,000 people employed in the Pimpri-Chinchwad, which is the automobile hub of India, have lost their jobs. Of them, around 25,000 were from large industries.
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The Pimpri-Chichwad industrial belt houses around 7,000 industrial units, 65 per cent of which cater to automobile manufacturers. The reason for the current scenario can be attributed to the decline in demand. say experts.

In the last two months, demand in the sector plummeted to an all time low of 10 per cent, while assignments related to infrastructure projects saw a dip by 50 per cent.

Experts also point out that there is decline in people opting for car loans. "The rate of interest for vehicle loans is steep and is acting as a deterrent," said Bankar.

Slight improvement

And with retail sales hit hard, big auto companies have started defaulting on payments to component suppliers.
PCSIA's president Suresh Mehtre said, "There is a slight improvement in the recent industrial condition.
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Nowadays, small-scale units are sharing the workload of 50 to 60 per cent of their total capacity as compared to the 30 to 40 per cent a few months back. To get back to normal, we have to wait till March."

According to Anant Sardeshmukh, director, Mahratta Chamber of Commerce, Industries, and Agriculture, the effect of slowdown will be seen throughout 2009.u00a0

He added that speeding up work on the proposed Pune International Airport might result in creating a climate conducive to newer investments and employment acrossu00a0 the city.