Hiring slump in auto sector just a
temporary phase: Experts
NEW DELHI: The automobile industry may be seeing a freeze in hiring activity and some firms even resorting to layoffs, but experts believe that all this is just a temporary phase and a revival in recruitments will occur as soon as the economy is back on high-growth path.
According to industry body SIAM, car sales in India fell for a record eighth month in row in June with a dip of 9 per cent as economic slowdown and poor consumer sentiment continued to hit demand.
However, experts are of the opinion that this is a "temporary phase" and the growth story of Indian automobile is "still intact".
"The growth story of Indian automobile remains intact." Tinwala further added that "India's automobile Industry is also dependent on other factors like infrastructure or financing rates."
"Personal vehicle and car is the passion in India. Automobile market will revive either with the positive signal of the economy or after the political stability which is almost expected in the second quarter of 2014," said Sunil Goel of leading executive search firm GlobalHunt.
Indian Staffing Federation VP Rituparna Chakraborty said: "Uncertainty is looming large and that has prompted consumers to become doubly conscious about any purchases be it a SIM card or a four-wheeler. Sales results are clearly throwing up this behaviour pattern."
She further said that the slowdown in sales has been happening over the last three quarters making it imminent for companies in the automobile space to rationalise on manpower.
"Market volatility would lead to prudent manpower planning," she added.
Overall, turnaround in hiring activity in the automobile sector is difficult to predict, experts said.