Mahindra & Mahindra has laid off 500 temporary staff employed at its Chakan plant near Pune, according to Hindu Business Line.
The temporary workers were employed mainly at the company’s logistics and support division, sources told the paper.
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An M&M spokesman said: “We have reduced 500 temporary workers from across our plants due to the prevailing situation within the auto industry. We have not yet taken any call on delaying investments but if the current situation prevails we may have to.”
The company manufactures its XUV500 and Rexton SUVs and commercial vehicles at the plant. It also has factories in Nashik and Haridwar.
M&M posted a 7% decline in domestic sales in June to 36,207 vehicles, down from 38,951 units in the same month last year. Earlier this month, the company announced it would stop production at its plants for up to eight days during July to reduce inventory.
Along with other carmakers, the company has been hit by persisting weak demand and the falling rupee, leading to an increase in manufacturing costs.
