Maruti Suzuki sheds 1,000 temp staff, may freeze hiring

Aug 3, 2019
New Delhi:  To keep up with the consumption-led slowdown, automobile major Maruti Suzuki India has shed over 1,000 temporary employees, is planning to freeze hiring and look at other cost cutting measures to tide over the current deceleration.

“Temporary employees are the first to get impacted and the same has happened in this case too,” a source familiar with the development told IANS. However, when contacted by IANS, the company didn’t offer any comment.

According to industry observers, month-on-month sales de-growth and inventory pileup at the dealerships have forced not just Maruti Suzuki India but other auto companies also to curtail production, which will eventually cause job losses at both factory and retail levels.

The slowdown has not only decelerated the sales but also eroded the automobile companies’ bottom lines.

On Thursday, Maruti Suzuki India reported a 33.5 per cent decline in total sales, including exports for July.

The company’s total sales fell to 1,09,264 units from 1,64,369, recorded in July of 2018-19. Similarly. the company’s domestic sales (domestic and OEMs) declined by 35.1 per cent to 1,00,006 units in July year-on-year (YoY).

Although, the total domestic passenger vehicle sales was lower by 36.7 per cent to 96,478 units YoY, the company’s light commercial vehicles’ sales in the country inched up 0.5 per cent to 1,732 units.

Exports declined by 9.4 per cent to 9,258 units from 10,219 shipped during July of FY19.

Last month, the automobile major reported a 27.3 per cent drop in its net profit for the first quarter of 2019-20.

Accordingly, the company’s net profit for the quarter fell to Rs 1,435.5 crore compared with Q1FY19, largely on account of lower sales volume and higher depreciation expenses.

Besides, the company’s net sales declined by 14.1 per cent to Rs 18,735.2 crore from Rs 21,810.7 crore reported for the same period during the previous year. “The company sold 4,02,594 vehicles during the quarter, lower by 17.9 per cent compared with the same period of previous year,” the company had said in a statement.

“Sales in the domestic market stood at 374,481 units, lower by 19.3 per cent,” it said. IANS

US court orders Byju’s to freeze $533 million owed to lenders

New York: The steering committee representing term-loan lenders of Byju's $1.2 billion loan on Friday said that a US judge has ordered to prohibit further movement or use of $533...

Strong demographic trend a structural positive for India: Morgan Stanley

New Delhi: India’s demographic trend of a younger workforce positions it positively as most large economies face shrinking working-age populations and tight labour markets, global brokerage, Morgan Stanley said. Per...

EAM Jaishankar calls FTA with four European nations ‘a bold achievement’

New Delhi: Calling the signing of the India-EFTA Trade and Economic Partnership Agreement (TEPA) a "bold achievement", External Affairs Minister S. Jaishankar said on Sunday that the move reflects a...

India has 8,000 startups led by women with $23 bn in funding: Report

New Delhi: India is now home to more than 8,000 startups that have women founders with a cumulative funding of nearly $23 billion till now, a report showed on Thursday....

RBI’s punitive actions will keep NBFCs on the edge

New Delhi: In continuation with its system clean-up mission, the RBI imposed an embargo on IIFL’s gold loan business on March 4 and on JM Financial Products’ (subsidiary of JM...

India aims 5-fold increase in global space economy share: Union Minister

New Delhi: After Prime Minister Narendra Modi took the decision to “unlock” the space sector from the “veil of secrecy”, the country is now targeting a five-fold increase in its...

Interoperable payment system for Net banking to be launched this year: RBI chief

Mumbai: RBI Governor Shaktikanta Das on Monday said that the interoperable payment system for internet banking is expected to be launched this year to facilitate quicker settlement of funds for...

Moody’s ups India’s growth forecast, expects policy continuity after LS polls

Mumbai: Moody's Investor Service on Monday raised India’s GDP growth forecast and expects the country to remain the fastest growing economy among the G-20 nations in 2024. "India's economy has...

India okays rice exports to Africa in outreach to Global South

New Delhi: The government has, as part of India's outreach to the Global South, allowed the exports of 1,10,000 tonnes of rice to three African countries to help them meet...

Reinstate Bharatmatrimony, Info Edge, Shaadi.com, TrulyMadly: IAMAI tells Google

New Delhi: The Internet and Mobile Association of India (IAMAI) on Saturday slammed removal of Indian companies' apps and asked Google to reinstate those delisted apps on its Play Store....

Delhi’s per capita income increases: Economic Survey report

New Delhi: Delhi’s Gross State Domestic Product (GSDP) at current prices during the fiscal year 2023-24 is projected to soar to Rs 11,07,746 crore, marking a notable growth of 9.17...

Sensex jumps more than 1,000 points on impressive GDP numbers

New Delhi: BSE Sensex jumped more than 1,000 points on Friday reacting to India’s impressive GDP numbers. Sensex was trading up by 1045.99 points up by 1.44 per cent at...

Read Previous

U Mumba outclass Puneri Paltan in Ultimate Table Tennis

Read Next

Tirupati AICC session and Congress elections

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com