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Indian Car Makers Assure Employees About No Salary Cut Or Job Loss Post Lockdown

With the Coronavirus pandemic affecting several businesses globally, several carmakers like Skoda-Volkswagen, Renault and MG Motor India has assured their employees that there would be no job loss or pay cuts.

No job loss or pay cuts for employees confirm several carmakers expand View Photos
No job loss or pay cuts for employees confirm several carmakers


  • No Job loss or pay cuts for employees of Skoda-Volkswagen & Renault India
  • Volkswagen might pay the due bonuses to more than 90% of its employees
  • MG Motor India also said no to salary cut or job loss

Auto manufacturers like Skoda-Volkswagen, Renault and MG Motor India have assured its employees that there will be no pay cuts or job losses due to Coronavirus crisis. According to a report from ETAuto, the carmakers gave assurance to the employees that they won't be taking this step even though COVID-19 Pandemic has affected business plans as well as cash flows. Moreover, Skoda-Volkswagen India Private Limited confirmed that it would continue to hire in India despite the Coronavirus crisis. 

Also Read: Volkswagen India To Add 10 More Dealerships By End Of 2020: Steffen Knapp

So, carmakers won't be laying off employees or cut  the salaries of their employees. On the contrary, protecting the workforce is critical for their long-term plans. Moreover, the Volkswagen Group in India, which includes Skoda-Volkswagen has told the workforce that it would also honour its commitment to pay bonuses due to more than 90 per cent of its employees. However, the top management has decided to delay their bonuses until business resumes to normal.

Skoda-Volkswagen India Private Limited will be investing over a billion euros in the Indian market as a part of its India 2.0 strategy for gaining the market share. Currently, the carmaker employs over 4,200 workforces in the country including its plant.


Several auto manufacturers assure its employees and dealers about the dilemma related to job loss


On the other hand, Gurpratap Boparai - MD, Skoda Volkswagen India mentioned that he would be attempting the most difficult part by reducing the structural costs as well as overheads. However, he assured that there would be no job loss or pay cuts. The ETAuto report also mentioned that the carmaker will be considering to offer appraisal to the employees once the lockdown is lifted.

Renault India's MD Venkatram Mamillapalle also said that the jobs of employees were safe. He confirmed that the employees are nervous over the last few months due to the crisis the entire world is facing. Putting an end to this dilemma, he assured his employees that they won't face any sort of pay cuts or job loss.

Also Read: MG Hector Plus Launch Postponed To June Owing To The Coronavirus Lockdown

MG Motor India is the latest entrant in the Indian automotive space, which is owned by the Chinese carmaker - Shanghai Automotive. The company has assured the dealers as well as the employees that their salaries would be protected and there would no job loss.

MG Motor India president Rajeev Chaba told ET Auto, "As corporates are busy making worst-case scenarios, we have taken a pledge that there will not be a single job cut even in the worst-case scenario for MG Motor in 2020."

The Indian passenger vehicle market dipped by 18 per cent in the fiscal year 2020, seeing the sales dropping to the levels seen five years ago. However, the carmakers like Skoda-Volkswagen, Renault, Kia and MG Motor are very much optimistic about the market and they have lined up several products to be launched in the country to cater the mobility needs of 1.3 billion people in India.


Source: ETAuto

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