Mahindra lays off 500 temporary workers
The firm says it may delay investments if slowdown in the industry persists
Mumbai: Mahindra and Mahindra Ltd, India’s largest utility vehicle and tractor maker, has laid off 500 temporary workers, the company said in a statement amid an industry slowdown.
“We have reduced 500 temporary workers from across our plants due to the prevailing situation within the auto industry," the company said in a release. “We have not yet taken any call on delaying investments but if the current situation prevails we may have to."
The announcement comes a few days after India’s third largest passenger vehicle maker by sales said it will halt production at its plants for one to eight days during the remaining part of the month to clear unsold stocks.
Mahindra Vehicle Manufacturers Ltd, a wholly-owned unit, will stop production for about eight days at its Chakan plant.
The company does not expect any adverse impact on availability of vehicles in the market as there are enough stocks in the market, it said.
Car sales in India fell 9% in June as demand continued to suffer due to rising ownership costs and sluggish economic growth.
Automakers sold 139,632 cars in India last month, according to data from the Society of Indian Automobile Manufacturers (Siam), with demand dropping for the eighth straight month.
Mahindra’s shares closed at ₹ 927.90 on BSE, up 2.46%. The benchmark Sensex rose 0.38% to end at 20,034.48 points.
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