Thursday, June 26, 2014
By Jitendra Singh
Major car makers shut their production plants
This news might surprise all the car enthusiasts in Indian car market but it is true. According to recent industry reports major car makers like Maruti Suzuki India Limited, Honda Motors, Tata Motors and Ashok Leyland have decided to shut their plants in the month of June. Well, without creating much suspense let us tell you that this is a bi-annual regular shut down for maintenance.
The largest Indian carmaker, Maruti Suzuki has shut its six plants across Gurgaon and Manesar for eight days in June, as part of the scheduled bi-annual closure for the summer season that would also help the company to adjust its inventory with the sluggish market conditions. 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 Maruti produces around 5,000 cars each days and the shutdown is part of the regular exercise to maintain its production machines and lines across its multiple factories. Maruti posted flat sales with 1.69 lakh units sold in the first two months of the current fiscal.
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 during different periods in June.Sales of many companies like Tata Motors, Toyota Kirloskar Motors and Mahindra & Mahindra, Volkswagen and Skoda Auto have nosedive in the last fiscal, leading to a 6% decline in sales in FY14.
Read complete story on Economic Times.