Skoda-Volkswagen India has fixed its shutdown days of 53 days. They have also planned an additional 16 non-production days in the next year. The company is trying to reform as well as form their strategy so that they can increase their share of the Indian auto market.
Currently, Skoda-Volkswagen India is selling less than two cars for every 100 cars that are new in India. They have also made plans to reduce 7,000 cars in India. As per the internal planning calendar of the company, the company will shift to a four-day workweek. This will be started for a total of 15 weeks starting from the second week in September 2020. As an effect of this, Skoda-Volkswagen will have a total of 180.5 production days, 124.5 non-production days and approximately 53 to 60 days of shutdown.
As per the company’s spokesperson, Skoda Auto-Volkswagen India has been preparing for the next generation of products with the India 2.0 project. They said that they are going to implement the MQB A0 IN platform in an operational facility that has been opened in Pune in January 2019. Here, the technical development of new vehicles will take place. To do this, it is necessary to plan out the no production days. The company’s strategy is to maintain its high rate of production as well as efficiency on the operational days and planning out the non-production days systematically so as to meet the customer deliveries in a sustainable way without causing any delays.
Skoda-Volkswagen is going to completely stop the production of its India specific compact sedan car, Skoda Ameo starting from early 2020. Ameo was introduced in India in the year 2016 when it had an aim to grab the share of the Indian auto market. As of now, two models of Volkswagen namely Vento and Polo will be manufactured at the plant in India.
The company said in a statement that there wouldn’t be any layoffs. “This optimized model will ensure that the company is able to retain its full workforce, and continue with the training and upskilling of the team,” as per the spokesperson.
An executive of the company has said that that it is likely that more people will be hired by the company under the India 2.0 project.
It is not likely that there will be any pay cuts, however, the leaves will be deducted under the settlement of wages with the Union. The agreement says that around 20 days of annual leave will be deducted in case of the planned non-production holidays.
The long-term goal is to gain a big market share for both Volkswagen and ŠKODA by the year 2025. Earlier, The Volkswagen Group India had announced the merger of the three of its passenger car subsidiaries that include the Volkswagen India Pvt Ltd (VWIPL), Volkswagen Group Sales India Pvt Ltd (NSC) and the Škoda Auto India Pvt Ltd (SAIPL).
This entity has been named as Škoda Auto Volkswagen India Pvt Ltd’ (SAVWIPL). Mr. Gurpratap Boparai has been appointed as the Managing Director of the merger.