Auto sector hiring down 22% in FY'12, but outlook has improved
With rising fuel and interest rates affecting vehicle sales adversely, the auto sector has witnessed a 22 per cent decline in hiring activities in FY2011-12 so far, although it is upbeat on recruitment in the remaining months of the fiscal, say experts.autos Updated: Oct 02, 2011 14:58 IST
With rising fuel and interest rates affecting vehicle sales adversely, the auto sector has witnessed a 22 per cent decline in hiring activities in FY2011-12 so far, although it is upbeat on recruitment in the remaining months of the fiscal, say experts.
"The job scenario will be robust in the coming months. New positions, though limited, will be created as a result of expansion of capacities and entry of new companies. The rest will be lateral and upward progression," Hyundai Senior VP (Finance and Corporate Affairs) R Sethuraman told PTI.
Echoing a similar view, Ford GM (HR) Dhananjay Nair said, "The upcoming festival season will provide a boost to sales and the job market will be lucrative in the remaining months of 2011." However, he said, "Although we have hired a pretty high number of personnel in the current fiscal, it is not as high compared to last fiscal."
According to a report by recruitment tendering platform MyHiringclub.com, 724 people were hired in the automobile sector during April-August, 2011, compared to 1,022 in the corresponding year-ago, translating into a 22 per cent decline.
"Overall, hiring activity in the automobile industry declined by one-fourth compared to last year's hiring activity. The fuel price hike and increase in interest rates on vehicle finance had badly impacted sales in this industry," MyHiringclub.com CEO Rajesh Kumar said. Kumar further said, "A few companies -- they are expanding their offices and establishing new plants -- are hiring." Auto experts are optimistic that the upcoming festival season will provide a boost to sales as well as the job market. Kumar said, "We are expecting the same hiring activity will continue till the final quarter of the current fiscal year.
There is a possibility of an increase in hiring activity in the new financial year, because the auto industry can't stagnate." Experts believe that most of the recruitment will be in the sphere of sales, marketing and manufacturing and according to them, candidates having a sound technical background, flexibility and positive attitude, with an alert and creative mind, are more likely to get a job. From an organisational perspective, Sethuraman said that recruiting talented individuals that are able to gel with an organisation's culture remains a major challenge, while Nair said that attracting the right talent would be the key to success.