According to reports, Maruti Suzuki India Ltd which is India's biggest automaker has recently reduced the number of workers it employs on temporary contracts due to a fall in vehicle sales.
With vehicle sales dropping rapidly and with little sign of a revival of the auto industry anytime soon, the industry, that accounts for almost half of India's manufacturing output, is going through one of its worst slowdowns in nearly a decade. Maruti Suzuki India Ltd had apparently employed 18,845 temporary workers on average during the six months that ended on June 30, has come down 6%, or 1,181 people, from the same period last year adding that job cuts had increased since April this year.
However, the reduction reported is first of its kind for the company. The listed company doesn't have to disclose reductions in temporary workers.
The Maruti Suzuki, majority-owned by Japan's Suzuki Motor Corp, said that the permanent workforce had not been reduced. The permanent workforce which came to 15,892 at the end of March had not been reduced over the past year. However, the company declined to say whether further reductions were planned.
Earlier the said that the production was cut by 10.3% in the first six months of the year.
On Thursday, a 33.5% decline in sales was reported by Maruti Suzuki, which produces about one in two of the passenger vehicles sold in Asia's third-largest economy. In July the reduction was about 109,265 vehicles compared with July 2018.
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