On Tuesday, Maruti Suzuki India Ltd former CEO and current Chairman Mr R.C. Bhargava has informed that their company didn’t renew contracts for 3,000 temporary employees as a consequence of the slowdown in the automobile industry.

As he said that contractual workers give flexibility to operations of the company. He also added that they don’t have any plans of firing any of their 16,050 strong permanent workforces.

With this news, Indian Auto industry continues to decline sales for nine consecutive months till July 2019. At the end of July, news came about 10 lac Indians faced job loss due to the slow down.

News of layoffs is coming from many companies. In the middle of August, a news about Tata Motors factory shut down too.

Before that, there was news of firing 2 lac employees by car dealers at the start of this month.

Maruti Suzuki Future Plans

On one hand, manufacturers are battling with rising inventory and on the other, increase in taxes and safety norms are making the situation more difficult.  

Chairman R.C. Bhargava said to its stakeholders that due to this added cost, it becomes less affordable for buyers during the company’s annual general meeting.

He also updated that the sell for commercial vehicles and two-wheelers also slashed down to a minimum.

To compensate for the loss, manufacturers have stopped production for some time to keep costs in check.

He has also informed that the company is working on new emission norms and showing interest in manufacturing CNG (compressed natural gas) and hybrid cars.