Maruti Suzuki India Ltd. had decided not to renew the contracts of 3,000 temporary workers, Reuters reported Aug. 27, citing Maruti Suzuki Chairman R.C. Bhargava's statements at the company's annual general meeting.
The move comes as the Indian carmaker tries to offset increased vehicle costs amid declining sales in the market, the report said.
Bhargava reportedly told shareholders at the meeting that India's safety norms and higher taxes have "added substantially" to production costs, affecting their affordability.
The chairman added that Maruti Suzuki plans to increase the manufacturing of compressed natural gas vehicles by 50% in 2019, Reuters added.
