Fri. Mar 29th, 2024

With the pandemic affection the economy of the nation, many of the sectors are also facing the effects amid lockdown. Due to the lockdown amid COVID-19 pandemic, most of the auto manufacturing sector is the worst hit due to prevailing conditions. As per reports available from the leading media, auto companies are planning to cut salaries of almost all the workers as they seek to reduce and manage the loss amid COVID-19 lockdown.

As per reports, India’s leading two-wheeler manufacturer Bajaj Auto and TVS Motor have already decided to cut down the salaries of employees temporarily. In the section of commercial vehicle manufacturers like Ashok Leyland and Tata Motors are amongst the hardest hit in the current session. Not only the auto manufacturers but also the OEM’s are facing disruption as well. According to the information shared by Apollo Tyres CMD Onkar Kanwar and vice-chairman, Neeraj Kanwar will take a 25% salary cut in FY21 as well.

Witnessing the adverse effect of the pandemic, the government has imposed a three-week lockdown starting March 25 and ending April 14, and the decision was again iterated with an extension to May 3.0
In the recent conference, Baja Auto executive director Rakesh Sharma said that “The lockdown has been hard on the ecosystem of employees, dealers, distributors, contract workers, vendors, truckers and the situation is expected to remain difficult for some time as well”.

The report from the Chennai-based Ashok Leyland is that the company has chosen to cut wages of all personals across the board. A spokesperson representing Ashok Leyland declined to comment on internal matters and the same was done by Tata Motors. Not only most of the manufacturers had decided to cut wages, but some of the vehicle makers such as Hero MotoCorp and Eicher Motors deferred payments to vendors, witnessing the liquidity challenges that may emerge. Reports also suggest that most of the auto component makers have been delivered March salaries but April being a complete washout of the dealers and component manufacturers. Companies that manufacture components related to the automobile have already announced pay cuts to manage capital collection challenges.

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