As the automobile sector’s sales fall during the lockdown period imposed due to the global pandemic Covid-19, TVS announced 6 consecutive months of pay cuts for its employees with the exception of workmen.
Starting from May till October 2020, TVS motor’s employees will take lesser salaries for six months as the company tries to find it’s footing in the steep slope of the economic crisis caused due to corona-virus. While a 5% salary will be reduced for junior executives, a 15%-20% salary cut will be implemented upon the senior management. Workmen level employees will not get reduced salaries as per the official spokesperson’s statement.
While in March 2020, TVS reported 55% fewer sales, in April, there were zero sales. However, the employees were paid their salaries in full for these months. In the domestic market sales, TVS has experienced a massive decline of 66% in overall sales of automobiles which is further increasing the plight of their situation. According to data from the Society of Indian Automobile Manufacturers (SIAM), the company’s passenger vehicle sales had declined by about 18%.
After the impositions of lockdown lift post 40 days, the company’s plants resume operations in Hosur, Tamil Nadu; Mysuru, Karnataka, and Nalagarh, Himachal Pradesh. Previously, there has been a 51% drop in sales of passenger cars and 88% drop in the sale of commercial vehicles but all is set to be recovered once the operations resume and the cuts are levied.