TVS Motor Company has announced that it would cut up to 20 per cent salaries of its employees as the company braves the impact of coronavirus pandemic. The company said that the temporary salary deduction would be rolled out for a period of six months.
This decision has come due to the plummeting sales of the two-wheelers' company. "In the wake of the unprecedented crisis, TVS Motor Company has rolled out a temporary salary reduction across different levels for a period of six months (May to October 2020)," said the company in a statement.
TVS said that the pay cut would not be implemented at workmen level but only at employee level. "There will be no salary deduction at the workmen level. However, there will be 5 per cent salary reduction at the junior executive level and about 15 per cent to 20 per cent at the senior management level. It was heartening to see employees coming forward and offering to take salary reduction voluntarily," said TVS.
TVS Motor Company registered a fall of 55 per cent in two-wheeler sales in March. TVS sold 1,33,988 units in March against 3,10,885 units in March 2019. Domestically, the motorcycle giant sold 94,103 units in March 2020 against last year's 2,47,694. Motorcycle sales were down from 1,41,086 in March last year to only 66,673 this year. Scooter sales too saw a year-on-year decline from 98,447 to 34,191 in the same month.
In April, when the lockdown was in full force, TVS Motor reported zero sales in the domestic market. It exported 8,134 two-wheelers and 1,506 three-wheelers after operations resumed at the Chennai port. Maruti Suzuki, Skoda Auto and MG Motor are some of the firms that reported zero domestic sales in April.