Auto sector, earlier hit by GST and now the lockdown due to the worldwide Covid-19 pandemic has dwindled sales over the months which has badly impacted the industry. Resulting this, TVS Motor has announced salary reduction across levels for a period of six months.
When contacted, a company spokesperson said, “In the wake of the unprecedented crisis, TVS Motor has rolled out a temporary salary reduction across different levels for a period of six months (May to October, 2020). There will be no salary reduction at the workmen level. However, there will be 5% salary reduction at the junior executive level and about 15% to 20% at the senior management level. It was heartening to see employees coming forward and offering to take salary reduction voluntarily.”
Bajaj Auto too has announced a pay cut but withdrew the same later. Maruti Suzuki has also announced job cut across different verticals. The entire industry has been suffering due to overall economic slowdown, lack of consumer interest and liquidity crisis. When the things seem to be balancing a bit, the industry was badly hit by the virus pandemic due to which the operations were closed down in the third week of March, leading to an increased pressure on the industry.
The experts are not even hopeful for a turnaround even in this fiscal. The double digit degrowth has left the industry to take up austerity measures, including pay cuts, job cuts and operational cost cutting.