A slowdown in Indian economy – Asia’s third largest economy – has hit demand for everything from automobiles to retail products, forcing companies to curtail production and lay off their employees. Automobile company Maruti Suzuki India Ltd too seems to be hit by the sluggish economic growth.
As per a reports of Reuters, company’s chairman RC Bhargava said on Tuesday the company had not renewed the contracts of 3,000 temporary employees, as the automaker battled rising inventory amid a slowdown in demand.
Witnessing the decline in auto sales for the straight ninth month, Bhargava held safety norms and higher taxes responsible for affecting the affordability of cars, affecting their affordability.
At the company’s annual general meeting Bhargava told shareholders that with India’s struggling auto market, more automotive manufacturers are laying off workers and temporarily halting production to keep costs in check, Reuters reported on Saturday.
Maruti plans to increase CNG vehicles by 50% this year, Bhargava said.