Friday, June 29, 2012
By Manoj Kumawat
Tata and General Motors declare no production days in factories
As the demand of the vehicles has taken a dip in the Indian market, two India auto makers have decided to reduce piling stock by suspending vehicle manufacturing this week. Among the two Indian auto makers are General Motors and Tata Motors. They will keep their factories closed for a day in a week. The efforts are being made to produce the vehicle as per the demand. The companies are accessing the requirement of the vehicles daily to avoid chance of piling stock.
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The General Motors will have a no production day this week to halt production. It will remain close both the factories for a day in a week. Besides, Tata Motors will not be producing trucks for 3 days in the last week of June. The media reports suggest that it would halt manufacturing of medium and heavy trucks in its manufacturing unit situated in Jamshedpur. The no production days would be June 28, June 29 and June 30. The higher interest rates and global economic slowdown has taken a toll on the auto market in the country. The situation can be gauged with the fact that this year the sale of cars registered a growth of 2.2 percent while it was 30 percent previous year due to the comeback in sales after January 2012.
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With the decrease in demand, Tata Motors had closed the factory in Pune for three days earlier this week. So the companies are paying a heavy price for the slump in the demand of the auto vehicles. Also, as the government lifted price control on fuel, it has affected the demand of gasoline vehicles badly. Following that the price of petrol has increased. It has pushed up the demand of diesel vehicles as diesel is cheaper than gasoline. Now, the companies like Toyota Motor, Fiat, Hyundai Motor, Honda Motor and Maruti India are exporting the petrol cars to other countries as the demand of such vehicles is very low.
Furthermore, the upcoming launch of Renault Duster SUV is also expected to get a hit due to fluctuating petrol prices in the country. But it is expected to compensate the loss with its Renault Duster Diesel variant.