While the reality points to caution, the Minister's answer to an emerging problem and discarding all facts and numbers was highly unprofessional and disappointing",
Coimbatore: With the industry reports strongly suggesting a great slow down in automobile sector, Tamil Nadu Minister for Industries, M.C.Sampath has blatantly brushed aside the reports and stated that there are no job losses in Automobile sector and just that the sector is passing through a small slump.
The Industry Minister along with Minister for Municipal administration, S.P.Velumani was in Coimbatore to attend the launch of "Aero space Tool Design & Manufacturing Program", a joint initiative by Boeing, Lakshmi Machine Works limited and Learning links foundation.
Addressing the press after the event, Minister Sampath shocked the spectators by stating that there is no major job cuts in the sector. The Minister's passable answer came after he was questioned on the facts presented by industrial experts and various associations regarding huge job loss in the automobile industry.
According to a front page report on The New Indian Express on August 14, nearly 2 lakh jobs have vanished in the last few months across the country, as estimated by The Federation of Automobile Dealers Association. In Coimbatore, close to 26,500 jobs in the industry have been lost according to the report.
Speaking on the slow down of the industrial sector, Ramamurthy, President, CODISSIA said, "There is a visible industrial slowdown. In particular, there is a production drop upto 50 to 60 per cent in the automobile sector. MSME units are affected, as most as these units depend on large corporates for orders."
A slow down in Automobile sector will affect a huge section of industries in Coimbatore, as there are thousands of small industries which manufacture ancillaries for automobiles. "If automobile sales takes a hit, production will be slowed down which will trickle down to smaller industries who do not have a choice but to cut down production hours and in the worst case lay off people" said an industrialist from Coimbatore.
According to a data from The Society of Indian Automobile Manufacturers ( SIAM), Only 18,25,148 units were sold in July 2019 compared to 22,45,223 sold in July 2018. This definitely has an effect on the employment in the sector and so is regarded as a huge job loss.
"While the reality points to caution, the Minister's answer to an emerging problem and discarding all facts and numbers was highly unprofessional and disappointing", stated an industrialist upon anonymity.
The Industry Minister along with Minister for Municipal administration, S.P.Velumani was in Coimbatore to attend the launch of "Aero space Tool Design & Manufacturing Program", a joint initiative by Boeing, Lakshmi Machine Works limited and Learning links foundation.
Addressing the press after the event, Minister Sampath shocked the spectators by stating that there is no major job cuts in the sector. The Minister's passable answer came after he was questioned on the facts presented by industrial experts and various associations regarding huge job loss in the automobile industry.
According to a front page report on The New Indian Express on August 14, nearly 2 lakh jobs have vanished in the last few months across the country, as estimated by The Federation of Automobile Dealers Association. In Coimbatore, close to 26,500 jobs in the industry have been lost according to the report.
Speaking on the slow down of the industrial sector, Ramamurthy, President, CODISSIA said, "There is a visible industrial slowdown. In particular, there is a production drop upto 50 to 60 per cent in the automobile sector. MSME units are affected, as most as these units depend on large corporates for orders."
A slow down in Automobile sector will affect a huge section of industries in Coimbatore, as there are thousands of small industries which manufacture ancillaries for automobiles. "If automobile sales takes a hit, production will be slowed down which will trickle down to smaller industries who do not have a choice but to cut down production hours and in the worst case lay off people" said an industrialist from Coimbatore.
According to a data from The Society of Indian Automobile Manufacturers ( SIAM), Only 18,25,148 units were sold in July 2019 compared to 22,45,223 sold in July 2018. This definitely has an effect on the employment in the sector and so is regarded as a huge job loss.
"While the reality points to caution, the Minister's answer to an emerging problem and discarding all facts and numbers was highly unprofessional and disappointing", stated an industrialist upon anonymity.