Colombo: Indian auto major Mahindra & Mahindra has made a case for a fiscal stimulus package from the government for the automobile sector to tide over an unprecedented slump in sales and arrest job losses. The company’s Managing Director Pawan Goenka told reporters here that the auto maker has retrenched about 1,500 temporary workers since April 1 this year, 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 automotive 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,” the Mahindra & Mahindra MD said. Goenka was speaking on the sidelines of the opening of Mahindra & Mahindra’s first completely knocked down automotive assembly unit here in a joint venture collaboration with Ideal Motors of Sri Lanka. Christened as Mahindra Ideal Lanka Pvt. Ltd. the local assembly plant located in Welipenna near Colombo on Saturday also rolled out its first product, the compact SUV, KUV100 petrol K6+ variant to start off with, followed by other variants in the near future.
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