NEW DELHI: Indian carmaker Mahindra & Mahindra has made a case for a fiscal stimulus package from the government for the sector to tide over an unprecedented slump in sales and arrest job losses.
The company’s managing director Pawan Goenka said that the carmaker has retrenched about 1,500 temporary workers since April 1, adding that if the slowdown continues it will be forced to lay off more employees.
However, he emphasised that the concern on job losses will come more from suppliers and dealers and not as much from original equipment manufacturers.
“I think from April 1 till now we have removed about 1,500 (temporary workforce)... We are trying not to remove more but if the slowdown continues we will probably be forced to remove,” he said.
Goenka was speaking on the sidelines of the opening of Mahindra & Mahindra’s first completely knocked down assembly unit in Colombo in a joint venture with Ideal Motors of Sri Lanka.
The Mahindra Ideal Lanka Private Limited plant is located in Welipenna near Colombo.