Auto Industry deciding to take a break in June

Car industry

Maruti Suzuki, the largest Indian carmaker, has shut its six plants across Gurgaon and Manesar for eight days in June, as a part of the scheduled bi-annual closure that would help the company to adjust its inventory according to the current market demand.

Maruti Suzuki that carries a capacity of around 15-lakh cars per annum, would take this week-long shutdown from June 22 to 29.

A company executive said that Maruti produces around 5,000 cars each day and the shutdown was a part of the regular exercise to maintain its production machines and lines across its multiple factories.

At times when the Indian car market is continuously facing sluggish market conditions, other automakers like Tata Motors, Ashok Leyland and the Manesar-based Honda Motorcycle & Scooter India have also observed plant shutdown.

Sales of competitors like Tata Motors, Toyota Kirloskar Motors and Mahindra & Mahindra, Volkswagen and Skoda Auto have faced downslide in the last fiscal, leading to a 6% decline in sales in FY14.

Tata Motors had closed all its commercial vehicle plants at Jamshedpur and Lucknow for period maintenance and to control its huge piled up inventory. The company had also undertaken a similar shutdown for its passenger car factory in Sanand in Gujarat, primarily used for Nano whose sales decreased 61% to just 21,129 units sold in the March ended fiscal.

The company has been hit badly by the continuous economic depression and the fall in demand for heavy vehicles that has forced the company to also maintain five-day working schedule at its commercial vehicles plants.


Leave a Reply

Your email address will not be published. Required fields are marked *

Make Correct Pattern to CommentWordPress CAPTCHA