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Automotive sector employment India FY 2013-2017

The Indian automotive sector employed over 1.3 million people in fiscal year 2017. The employment figures were relatively small compared to the EU automotive industry that employed around 14 million personnel. In the United States, part dealers and motor vehicle sector had around two million employees on their payrolls in March 2019. Even then, India had one of the largest global automotive markets in 2019. The sector however, started facing the effects of a slowdown in terms of sales and rising inventory numbers mid-way through 2019.

Employment loss

Slumping sales and halts in production triggered massive job cuts throughout the industry. Component manufacturers and dealers had to lay off around 350 thousand workers since April 2019. The adversity was not limited to automakers only. Tire manufacturers also had to cut down the workforce due to the sales slump. Temporary suspension periods were also implemented by leading carmakers in the face of declining demand.

Impact

The automotive industry contributes a share of about seven percent to India’s GDP each year. It also accounted for almost half of the country’s manufacturing output. Maruti Suzuki, the country’s biggest carmaker, reduced its temporary workforce by about six percent. Tata Motors and Mahindra on the other hand, faced periods of stagnant productions.

Employment in the automotive sector across India from financial year 2013 to 2017

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Source

Release date

January 2020

Region

India

Survey time period

FY 2013 to FY 2017

Supplementary notes

Note: India's financial year begins in April and ends in March. For example, FY 2016 started in April 2015 and ended in March 2016.

Values have been rounded for clarity.

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Statistics on "Automotive industry in India"

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