Lockdowns affect unorganised workers the most, says auto industry expert

In an interaction with ETV Bharat, Nikunj Sanghi, President, Automobile Skill Development Council (ASDC), said that auto dealers had to lay off around 30 per cent of workers last year due to the pandemic induced disruptions.

Alwar (Rajasthan): More than automakers and dealers, unorganised workers associated with the automobile industry are the most affected due to lockdowns, says a veteran automobile industry expert.

In an interaction with ETV Bharat, Nikunj Sanghi, President, Automobile Skill Development Council (ASDC), said that the previous financial year was one of the worst years for the Indian automobile sector as the sales nosedived and many jobs were lost due to the nationwide lockdown.

He also said that the problems for the industry will be accentuated if there is a second round of lockdowns in the country.

“No doubt, automakers and auto-dealers will be affected (if the lockdowns are imposed again). But, my real worry is about unorganised workers like mechanics and people working in small workshops,” Sanghi said.

According to the Federation of Automobile Dealers Association (FADA), total sales of vehicles were down by 28.64 per cent in 2020-21 over a year-ago period.

Among the various categories, the three-wheeler segment was the worst hit as its sales were wiped out by more than 50 per cent.

Up to 30% of jobs lost last year due to lockdowns

According to Nikunj Sanghi, up to 30 per cent of people employed by auto-dealers in Rajasthan lost jobs due to previous lockdown.

“Rajasthan has around 2,000 auto dealerships and each dealer employs nearly 100 people. Due to previous lockdowns, around 30 per cent of them have lost jobs….in view of the current developments I see more lay-offs in the coming days,” said Sanghi who has been an auto dealer for nearly four decades.

Amid the rising cases of COVID-19, the Rajasthan government has imposed night curfew in ten major cities till April 30. Similar restrictions are in place in states like Madhya Pradesh, Maharashtra and Gujarat.

Citing the example of Maharashtra, a key industrial state in India, he said: “Maharashtra accounts for nearly 35 per cent of the country’s total automobile production. If the government opts for a state-wide lockdown it will affect the industry in other parts of the country also.”

According to the union health ministry data, India reported 1,68,912 new Covid-19 cases in the last 24 hours.

Maharashtra alone reported over 63,000 new Covid-19 infections which is the highest ever single-day surge since the pandemic.