Auto maker Tata Motors on Wednesday said it will offer a voluntary retirement scheme to a section of employees as a measure to rationalise costs during the prolonged slowdown that the automobile industry in India is seeing.
While speaking to reporter on the sidelines of the launch of truck racing series for the first time in India, Tata Motors Managing Director Karl Slym said the company is investing Rs 3,000 crore on product development in FY 14.
"The industry as well as India is going through a rather protracted downturn. Therefore, there are lots of things out there to enable us, ensure our structure is suitable. Voluntary retirement scheme (VRS) allows those people to move on with our support," he said.
He, however, added that "very minor" number of employees would be offered the VRS.
Talking about product development, Slym said the company is spending Rs 3,000 crore in FY14. This is a part of the company's Plan 20-20 and will span commercial vehicles and passenger vehicles.
Meanwhile, the company’s T1 Prima Truck Racing Championship will be held on 23 March at the Budh International Circuit in Greater Noida, near the national capital.
