Headcount of employees to remain stable amidst slowing sector returns


The automotive industry has been biting the dust for a long period of time owing to the policy changed by the government and not giving enough time for the industry to ratify them with regards to the development curves set by the industry for themselves in the tumultuous times that the industry has been facing and the grim-looking future ahead if the domestic consumption rate doesn’t pick up. While most of the manufacturers have cut down of the employee headcount to cut their losses while at the same point of time increased the prices of their products to mitigate the effect of reduced sales revenue and higher operating and input costs, Tata motors have come ahead and said that there wouldn’t be any deviation in its employee strength as it is also one of the largest employers in the industry and though it might reduce the number of working days for maintaining a lower inventory which will cut down on costs slightly and increase its model prices across the spectrum, but unemployment will be curbed in this time of slowing growth.

The fear of unemployment growth and the aftereffects of it have hit the manufacturing industry hard, and in the face of such difficult economic times, the support of big industrialists is a quintessential commodity for the government to enact better policies and revive the industry because any company who have a responsibility towards their shareholders and investors will only be able to hold the market forces unleashing on itself for so long and thus definitive and urgent policy decisions needs to be made to tackle the problem at hand if the growth story is to continue.