The impact of the slowdown in the auto sector is now visible. Maruti Suzuki, the country’s largest carmaker, has decided to cut its workforce. According to the news agency Reuters. However, the company has started sorting the employees, who have been placed on contracts first, instead of their regular employees. As of 30 June, the number of such employees was 18845, out of which services of 1181 people have been terminated.
The decrease in vehicle sales started in the second quarter of FY 2018. Last year, during the festive season, companies were expecting that the sales figures would increase, but this did not happen. From December to June, the stocks of companies are lying as before. The situation is that due to lack of demand, many companies have stopped production in their factories.
The country’s largest carmaker Maruti recently released quarterly results. The company reported a profit of Rs 1435.50 crore in the first quarter. The company has lost 27 per cent year on year. The company has lost 14.1 in net sales and is down to Rs 18,735.20 crore. Sales of the company’s vehicles have also fallen 18 per cent. Now the company has decided that it will not double the production capacity in its Gujarat-based plant.
The latest figures are yet to come in July. Not only cars and bikes but other commercial vehicles including trucks and tractors have also seen a decrease in sales. Major commercial vehicle companies such as Tata, Mahindra and Ashok Leyland have also been impacted by sales.