{"id":202658,"date":"2019-08-07T12:25:02","date_gmt":"2019-08-07T12:25:02","guid":{"rendered":"http:\/\/151.106.38.4\/2019\/08\/07\/mahindra-warns-of-job-losses-in-auto-sector-seeks-government-s-help\/"},"modified":"2019-08-07T12:25:02","modified_gmt":"2019-08-07T12:25:02","slug":"mahindra-warns-of-job-losses-in-auto-sector-seeks-government-s-help","status":"publish","type":"post","link":"https:\/\/nagalandpost.net\/index.php\/2019\/08\/07\/mahindra-warns-of-job-losses-in-auto-sector-seeks-government-s-help\/","title":{"rendered":"Mahindra warns of job losses in auto sector, seeks government\u2019s help"},"content":{"rendered":"

<\/p>\n

Automaker Mahindra and Mahindra Ltd (M&M) said on Wednesday it saw a “huge danger” of job losses in the ailing domestic auto sector, as it sought government intervention, including tax reductions to revive demand.<\/p>\n

A lending crisis among the country’s shadow banks, which fund nearly 55-60% of commercial vehicles and 30% of passenger cars, has led to automakers, including M&M and its rivals Maruti Suzuki India Ltd and Tata Motors Ltd, to either cut production or temporarily close plants.<\/p>\n

M&M said in a statement 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.<\/p>\n

A slump in sales is also triggering massive job cuts in the sector that employs 35 million people directly and indirectly.<\/p>\n

Reuters reported on Tuesday that initial estimates suggest automakers, parts manufacturers and dealers have laid off about 350,000 workers since April.<\/p>\n

“Now job losses are happening in four areas OEMs (original equipment makers), suppliers, dealers and unorganised sector,” Managing Director Pawan Goenka told reporters in Mumbai in a post-earnings press meet.<\/p>\n

M&M’s heavy goods segment, which makes trucks and tippers, saw its worst growth in nearly six years, the company added, as it reported a June-quarter consolidated profit that nearly halved from a year ago to Rs 914 cr ($129.10 million).<\/p>\n

“Given the current challenging global and domestic growth environment, a concerted policy effort will be required to prop sentiment, put a floor under consumption and revive growth,” M&M said.<\/p>\n

M&M shares were 4.9% down in afternoon trading.<\/p>\n

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Mahindra warns of job losses in auto sector, seeks government\u2019s help<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[667],"tags":[],"class_list":["post-202658","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/202658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=202658"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/202658\/revisions"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=202658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=202658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=202658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}