Chennai: Auto sector slowdown hits market; companies halt production, announce pay-cut

Automobile giants in the city have cut down on the number of working days and reduced the strength of contract employees.Automakers in Chennai have announced pay-cuts and some of them have even decided to halt production temporarily owing to continued weak demand for its products. The Hinduja Group flagship firm Ashok Leyland is the latest…

Chennai: Auto sector slowdown hits market; companies halt production, announce pay-cut

Automobile giants in the city have cut down on the number of working days and reduced the strength of contract employees.Automakers in Chennai have announced pay-cuts and some of them have even decided to halt production temporarily owing to continued weak demand for its products. The Hinduja Group flagship firm Ashok Leyland is the latest to the bandwagon of automobile companies which had announced halting production.
On Monday, the heavy vehicle company announced that it has decided to halt production for 59 days at its various plants across India. In Tamil Nadu, the company has decided to halt the production for 16 days in Ennore and 5 days at Hosur.
Chennai, popularly referred to as the ‘Detroit of Asia, accounts for close to 33% of auto parts production in the country. As the entire country is staring at a deep-rooted slowdown, in the last three months, automobile giants in the city like Ashok Leyland, Apollo Tyres, Daimler, TVS Groups, Nissan, Royal Enfield, etc have cut down on the number of working days and reduced the strength of contractual employees.
“The contractual employees are in a state of shock. If the production goes down, naturally the company will try to cut down on expenses that are not necessary. The contractual employees won’t be getting allowances like transportation, food and other benefits they received while working in an established automobile company. They are forced to switch over to smaller firms, where they will be getting only their wages and no additional benefits as the industry is in very bad shape,
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