Mahindra & Mahindra, a vehicle manufacturer known for its power vehicles, has prepared a case to deal with the unprecedented slowdown in the automobile sector. "The automaker has removed about 1500 temporary employees since April 1 this year," Pawan Goenka, managing director of the company, told reports in Colombo. Moreover, if the recession continues, it will be forced to remove more employees. However, he stressed that the concern of job losses will not be greater than automotive suppliers and dealers will not exceed original equipment manufacturers (OEMs)."
In his statement, he further said that the festive season is crucial to the transformation of India's auto industry otherwise it will see negative impacts in the job and investment sectors. The auto industry has seen the worst decline in the past 19 years, with the decline being 18.71 per cent. That's why the auto sector has lost millions of jobs in the last two to three months.
Toyota has also cut production of Innova Crysta and Fortuner at its Karnataka plant. More than 3,000 temporary employees of Maruti Suzuki, the country's leading carmaker, have been forced to lose their jobs due to the recession. At present, it has no impact on the permanent staff. Talking to some private TV channels, he said it is a business part. When demand increases, contract employees are hired and contract employees are reduced when demand decreases.