Maruti car sales decline: Results in job cuts

Maruti Suzuki India has reduced the number of temporary workers to cope with sales slowdown. In its guideline MSIL has already announced 15 percent YoY production reduction owing to auto industry slowdown. This will also aid in inventory reduction at the dealer level.

PV market share of Maruti dropped to 51 percent in June 2019. It is down from 53 percent at the end of June 2018. Though MSIL remains at the top of the chart as the biggest domestic seller, its sales volumes have contracted. In July 2019, this number fellow below lakh units. Not only has Q1 2019-20, but July also has followed the weak lead. MSIL domestic sales for the month is down from 36.3 percent to 98,210 units, down from 154,150 units sold in July 2018. Every other car sold in India is from Maruti. Maruti Suzuki told Reuters it employed 18,845 temporary workers on average in the six months ended June 30.

This is 6 % low or 1,181 from the same period last year. MSIL also said job cuts had accelerated since April. This is in line with the industry’s poor showing since start if FY 2019-20. MSIL’s permanent workforce has not been affected.

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Source : newscrab

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