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Maruti Suzuki reduced temporary workforce by 6%, impacting sales decline

Business

  • The number of temporary workers stood at 18845 by the end of June, down 1181 from the first half of last year.
  • Maruti’s temporary workforce declined for the first time, as sales continued to decline, production also decreased
  • Sales declined 33.5% to 1.09 lakh units in July, the company reduced production by 10.3% in January-June

new Delhi. The number of temporary employees of Maruti Suzuki India declined by 1,181 to 18,845 in the first half of this year (January-June). This is 6% lower than the first half of 2018. For the first time, Maruti’s temporary workforce has come down. The retrenchment process accelerated more than April. The company did so because of a slowdown in the auto industry. News agency Reuters reported this on Friday.

Auto industry’s worst phase in 10 years: report

Reuters quoted sources as saying that Maruti will not make new recruits until the slowdown is over. However, the company has not officially said anything about this. Maruti said sometime back that it had cut production by 10.3% in the first half. Sales of the company also declined by 33.5% in July. According to the report, the auto industry is going through the worst phase of 10 years. Vehicle sales are steadily declining. The situation is expected to improve soon.

Auto industry slowdown threatens unemployment

The unemployment rate in the country reached 7.51% in July, according to data group CMIE. In July last year it was 5.66%. It does not include figures of daily laborers. Economists are calling government unemployment figures invalid and unreliable, according to a Reuters report. The slowdown of the auto industry may worsen the situation.

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