M&M retrenches 1,500 workers

Auto major Mahindra & Mahindra (M&M) is seeking a fiscal stimulus package from the government for the automobile sector, which had been battling a prolonged slowdown.

Pawan Goenka, managing director, M&M, told reporters that the company has retrenched about 1,500 temporary workers since April 1 this year.

He said if the slowdown continues the company will be forced to lay off more employees. M&M has deferred about 15-20% of its capex from its overall investment plan.

However, he emphasised that the concern on job losses is more at the automotive suppliers and dealers and not as much at original equipment manufacturers. Goenka was speaking on the sidelines of the opening of M&M’s first completely knocked down automotive assembly unit in collaboration with Ideal Motors of Sri Lanka.

According to Goenka, a turnaround is crucial for India’s automotive industry during the ongoing festive season, or else a significant negative effect may be witnessed in terms of jobs, investment, and even suppliers being forced to declare bankruptcies.

Mahindra India