Tata Motors has reduced the workforce at the Pantnagar plant by 21% during the first quarter, due to the economic slowdown.
The fact that Tata has reduced its workforce is a clear sign that the crisis has reached product categories which doing well until recently. The Pantnagar plant, which had 5,838 employees at the end of the financial year in March, manufactures the light trucks Ace, Tata’s best-selling light truck which reached record sales last year.
From April to June, the automaker has reduced its workforce at the facility, to 4,630 employees, which means 1,208 jobs lost, according to Provident Fund (PF) contribution records for the plant. Other plants which have seen their workforce reduced are the Hubli plant in Karnataka and the Sanand facility in Gujarat.
“Given the market volatility, Tata Motors has been prudent in its manpower planning. It has avoided blind replacement of superannuating employees and also done some adjustments in its requirement of temporary resources,” said a Tata Motors’ spokesperson. We align our production capacity with demands from the industry and our workforce is spread across markets where we are present.”
During the first quarter Tata’s sales fell 29% in India to 184,942 units, due to a slow economic growth and low demand.