The country`s second largest two-wheeler manufacturer, Bajaj Auto, on Sunday said there was no case for any layoff in the company even though there has been a cut in production due to a slowdown in demand.
``Unlike the IT or services industries where the total cost of employee is 16-18%, in our case it is 3.5%. So if I sack or reduce employee numbers, it will not help me much. So why should I get bad reputation? `` Bajaj Auto chairman Rahul Bajaj told reporters on the sidelines of the World Economic Forum`s India edition.
He said there has been a slowdown in demand, which has resulted in production cut.
``October was a disaster (in terms of sales). November will be equally bad, `` Bajaj noted.
According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country during October was down by 18.17% at 5,38,353 units, against 6,57,874 units in the same month a year ago.
Total two-wheeler sales in the month also dipped by 14.52% at 678,245 units, compared with 793,420 units in the same period last year. Asked if that would mean further production cuts, he said, ``If demand goes down, production will go down. If the demand goes up, production will go up.``
Bajaj said he did not see demand going up in the near future, adding, ``I see that for the next 12 months we have to tighten our belt.``
Shares of Bajaj Auto declined Rs 9.65, or 2.54%, to end at Rs 370. The total volume of shares traded was 83,182 at the BSE (Friday).
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