Frustrated by the slowdown in the auto sector, companies are constantly taking measures like cutting production, reducing working hours. Now Ashok Leyland, the Hinduja Group's auto company, has announced to shut down its plants for 5 to 18 days in September. The company has cited weak demand for this. The company is reducing working days in all its plants in the country.
The company has decided to stop functioning for the most part in Pantnagar for 18 days. Apart from this, it has been decided to stop work for 10 days in Alwar, 10 days in Bhandara, 16 days in Ennore and 5 days in Hosur plant.
Significantly, the country's auto industry is going through a bad phase. In the midst of the slowdown in the auto industry, more than 3000 temporary employees of Maruti Suzuki India have lost their jobs.
Before stopping the work, Ashok Leyland has also offered employees to leave the company. Let us know that due to the huge decline in production and sales, more than 2 lakh jobs have been lost in the auto sector since April.
Ashok Leyland has announced plans to exit the company for executive-level employees. Under this, the company has issued a voluntary retirement scheme (VRS) and employee separation scheme (ESS) by issuing a notice to employees. The company has introduced this scheme at a time when its employees were on strike to increase the bonus.
Ashok Leyland's sales fell by 47 percent
Ashok Leyland mainly produces commercial vehicles. Total sales of the company declined by 47 percent to 9,231 commercial vehicles in August. In the same month last year, the company sold 17,386 vehicles. The company said in a statement that sales of medium and heavy commercial vehicles stood at 5,349 units in this month.
Auto industry crisis is not decreasing
The auto industry is constantly going through bad times. The production and sales of vehicles have been witnessing a decline in the last 10 months. Continuation of decline in sales of cars and other vehicles has been going on for 10 consecutive months. Even in August, there has been a steep decline of 29 percent in car sales.
In these circumstances, the auto sector organization Siam has also sought help from the government. The industry is constantly demanding that the GST rate on cars be reduced from 28 to 18 percent. Now the entire industry is eyeing the next GST Council meeting to be held in Goa on September 20, whether GST on cars is reduced in this important meeting.
