If production is cut, resources will also be reduced: Maruti

The company has been cutting production across factories since February.

With poor auto sales leading to job losses, Maruti Suzuki on Wednesday warned of further layoffs if the demand doesn’t pick up either during the upcoming festive season or beyond that.

The country’s largest carmaker had to let go of over 3,000 temporary workers due to cut down in production owing to the prolonged slowdown in domestic car sales. The company has been cutting production across factories since February this year to manage inventory which has been higher than normal since the second half of the previous fiscal. Maruti Suzuki executive director (marketing and sales) Shashank Srivastava said if the slowdown continues, production is bound to be lower which may lead to further resources being reduced.

“Why would you send more stock to dealers when it is still high and why to keep more stock in factory? If the production is reduced, the corresponding resources will also be reduced. How many and for how long, I cannot say,” Srivastava said. The company launched its six-seater MPV XL6 at a price range of Rs 9.79 lakh to Rs 11.45 lakh, which will be sold through its Nexa dealerships. —FE