A downturn in Asia’s third-largest economy is denting sales of everything from cars to biscuits, 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.
“The company had not renewed the contracts of 3,000 temporary employees, as the automaker battled rising inventory amid a slowdown in demand,” “company’s chairman RC Bhargava said on Tuesday.
According to the reports of Reuters, 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.
“With India’s struggling auto market, more automotive manufacturers are laying off workers and temporarily halting production to keep costs in check,” Bhargava told shareholders at the company’s annual general meeting
“Maruti plans to increase CNG vehicles by 50% this year,” Bhargava said.
He was hopeful that the new steps announced by the central government last week to boost the Indian economy.