Like today, a morning caller on the show shared a problem when prompted by the RJ. She told the RJ that she had completed her graduation and was interested in pursuing M.B.A. and specialize in Human Resources. She was even currently working in a HR profile in a company. She is really passionate about a career in HR but her parents were opposing the same. This has led to misunderstanding between her and her parents.
The RJ took a comic flight and told her that the reason for misunderstanding was that she was still a ‘Miss’ (spinster). He recommended her to get married, after which her parents would lose control over her and she will wield greater control over her husband and then she can have her way. I perfectly understand that the RJ was trying his best to be humorous but what a crappie response from the RJ, didn’t even sound comic. Besides the caller had a genuine problem that most children, especially girls, face in this country. Parents do not seem to have enough of the control that they wish to exert over the lives and careers of their children, often pushing them to limits of frustration. They just can’t let them ‘go’.
Real problems need real solutions, else they have far-reaching consequences. Take for instance the recent firing of about 500 temporary workers by Mahindra & Mahindra (M&M) one of India’ leading automotive manufacturers. Should you blame them for that?
The car sales have been worst ever in the history of Indian automotive sector. In fact the entire automotive industry seems be having a free-fall when it comes to sales, whether it is cars, two wheelers, three-wheelers or commercial vehicles.
The demand has dropped drastically and car manufacturer are forced to shut-down operations for days together to prevent inventory pile-up.
But experts blame the policy-paralysis on part of the government, subdued economy and falling rupee behind such a dramatic downturn in the auto industry’s fortunes. Despite the industry experiencing a record fall in sales, the government has increased import duties on luxury cars (from 75% to 100%) and increased excise duties on SUVs (from 27% to 30%). Besides, there is confusion over the definition of sports utility vehicles or SUVs. Hence many companies are forced to cut-down on ground clearance etc. to avoid such duties. The rising fuel prices haven’t helped either. When due to widening gap between petrol and diesel prices, the demand for diesel cars started to go up and industry saw a glimmer of hope, the government decision to drastically revise the diesel prices has stolen that ray of hope as well from the automotive manufacturers. In the end it became a zero-sum game.
The subdued economy, falling GDP and falling disposable incomes of the Indian customer has magnified this problem. The high interest rates maintained by India’s central bank RBI to check inflation has hardly been able to check what it intended to; however it has definitely succeeded in checking the auto sales, as EMI on bank loans continue to be high, making the Indian customer even more reluctant.
The Indian rupee's gain of gravity is likely to make the problem even more acute, as the operational cost for the car manufacturers are likely to go up. Again, thanks to government’s economic policies.
The heat is finally passing-on to the people employed in the automotive sector in India. Temporary workers are the first hit in M&M and more companies are likely to follow the suit. The auto manufacturer cannot be blamed as business viability has to be maintained at any cost and for that layoffs may be inevitable.
Economy is finally taking a toll on the engagement as well. Buyers are disengaged (from the auto manufacturers), manufacturers are disengaged (from the government). Internal disengagement is then inevitable.
Much like majority of the Indian parent, the government doesn’t seem to be letting ‘go’ the control over the economy. The result is a growing stress that is impacting major cracks in the economy and across industry sectors.
Hope someone wakes-up before it is too late.
Till then, it is "lose-lose" situation.
1 comment:
Actually Maruti was the first company that sacked 200 contractual employees at its Gurgaon plant on July 9 and then following the same suit Mahindra and Mahindra sacked 500 temporary workers at its Chakan plant on July 15.I agree with your inference that auto manufacturer cannot be blamed for this downsizing.Govt also raising taxes to fight fiscal deficit.And moreover rising price of oil and devaluation of Indian rupee worsening the situation.
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