New Delhi: The biggest hit in the country's ongoing recession is the auto sector. For a long time, many auto-industry companies have retrenched. Maruti Suzuki India has also been included in the list. Maruti Suzuki India Chairman RC Bhargava said on Tuesday that the company will not cut its 16,050-strong permanent workforce. However, the contracts of about 3,000 temporary employees have not been extended further due to the slowdown.
This company left Vodafone, Idea, and Airtel behind in the case of earnings!
That means these employees have no job left. Addressing shareholders at the annual general meeting, Bhargava said if state governments do not play their role in encouraging the manufacturing sector, the Modi government's ambitious goal of creating a $5,000 billion economy in five years could be derailed. At the same time, it will be very difficult to bring the manufacturing sector's contribution to the economy to 25 %.
Therefore, the States have to play a part in advancing the manufacturing industry and understand the importance of their role in the entire vehicle industry. Bhargava pointed out that the vehicle sector's share in the country's GDP is 49 %. The industry generates a lot of employment and revenue in the States, but it is affected by recession or decline in sales.
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He said the States need to do a lot more on the operational cost of the industry. Taxation of States is very high. The tax on petrol is very high. How convenient it can be for someone to have a car is largely up to the States. Bhargava said the company is going to increase the production of CNG cars by 50 % this year. The BS-6 standard is expected to boost sales in the next financial year.
The country's growth rate will be 7 percent, this institution estimated!