Exits by automotive companies from India over the last five years have resulted in 64,000 layoffs and a dealer investment loss of Rs 2,485 crore, data shared by the Federation of Automobile Dealer Association to the Heavy Industries Ministry reveal.
Six major automotive companies and brands – Ford, General Motors, MAN Trucks, Fiat, Harley Davidson, UM Motorcycles – a number of electric vehicle companies and a joint venture of Eicher Polaris have ceased sales operations in India since 2017.
FADA has requested the heavy industry’s intervention which includes the creation of a taskforce that takes a day-to-day update from Ford India to monitor the compensation plan for automobile dealers and dealership employees and make sure that Ford India indemnifies dealers from various consumer and civil cases, both under pendency and against any future cases that may arise directly or indirectly out of Ford’s restructuring announcement.
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