Two lakh jobs cut across automobile dealerships: FADA

New Delhi: Around two lakh jobs have been cut across automobile dealerships in India in the last three months as vehicle retailers take the last resort of cutting manpower to tide over the impact of the unprecedented sales slump, according to industry body FADA.

With no immediate signs of recovery, the Federation of Automobile Dealers Associations (FADA) feared that the job cuts may continue with more showrooms being shut in the near future and sought immediate government intervention such as reduction of GST to provide relief to the auto industry.

"The majority of job cuts have happened in the last three months. It started around May and continued through June and July," FADA President Ashish Harsharaj said.

He further said, "Right now most of the cuts which have happened are in front-end sales jobs but if this (slowdown) continues, then even the technical jobs will be affected because if we are selling less then we will also service less, so it is a cycle."

When asked how many jobs have been cut across the dealerships in India, he said, "Close to about two lakh."

"It is a guesstimate that our members have already cut 7-8 per cent of the jobs in most of the dealerships as the degrowth has been very high," he added.