Thursday, May 22, 2014
By Manoj Kumawat
M&M influenced by slow demand, discontinues production for 3 days
Homegrown auto major Mahindra & Mahindra Ltd today announced stoppage of production for up to three days during the rest of the ongoing month in view of the slump in demand. "As part of aligning its production with sales requirements, (Mahindra & Mahindra) would be observing no production days at the company's automotive plants for up to three days during the remaining period of May, 2014," Mahindra & Mahindra said in a BSE filing.
It further said that one of its wholly-owned subsidiary Mahindra Vehicle Manufacturers Ltd's plant at Chakan would also be observing no production days for up to three days during the remaining period of May 2014. "The management does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements," it said.
The company had reported 12 per cent decline in total sales at 36,274 units in April. Its domestic sales stood at 34,107 units as against 39,902 units in the same month of previous year, down 15 per cent. Earlier in January this year, the company had undertaken a similar no production days for three months to adjust production to market demand. M&M has manufacturing units at Chakan (near Pune), Nashik and Haridwar for its automotive sector. Shares of M&M were being quoted lower by 0.03 per cent at Rs 1,135.1 in midday trade on the BSE.
Source: Economic Times