MUMBAI: TVS Motor Company Ltd, the maker of Apache motorcycles, has announced a cut in employees' salaries for six months, starting May.
The company has clarified there will be no salary reduction at the workmen level.
“In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months," a company spokesperson said late Monday.
Salaries will be reduced to the extent of 5% for junior executives and 15-20% at the senior management level.
“It was heartening to see employees coming forward and offering to take salary reduction voluntarily," the spokesperson said.
Struggling to maintain ample liquidity and free cash flow, automakers saw sales crash 51% in passenger cars segment, 88% in commercial vehicles, 58% in three-wheelers and 40% in two-wheeler categories due to the nationwide lockdown since March to contain the coronavirus outbreak.
According to data from Society of Indian Automobile Manufacturers (Siam), TVS Motor Company’s domestic sales in the three- and two-wheeler categories crashed more than 60%in March.
TVS Motor on 6 May resumed operations across its production units in Hosur, Mysuru and Nalagarh after more than 40 days.