123Pune.com

NEW DELHI: The situation seems to be getting worse for auto companies. After announcing block closure at its Jamshedpur plant, Tata Motors on
Friday announced that it would shut commercial vehicle production at its Pune and Lucknow factories for six days this month. Component supplier sources said that other companies were also slowing down production, which include utility vehicle major Mahindra and Mahindra (M&M).

Tata said it was shutting production to avoid inventory build-up. A spokesperson said the Pune plant will be shut from November 21-26, while production will be halted at Lucknow from Nov 10-15. Unavailability of finance coupled with high interest rates was forcing customers to postpone purchases, the company said. "This will call for appropriate action from Tata Motors from time to time, to match production with demand and avoid unnecessary build-up of inventory in the company or with the company's dealers," the spokesperson said.

Vendor sources said Mahindra had slowed down production with expected weak sales forecast. The company had shut down its plant for the whole of last week. "It was on account of the annual maintenance shutdown that we normally have around the Diwali time," said Rajesh Jejurikar, chief of operations for Mahindra's automotive sector, adding that the company was "closely watching the market situation" and would keep production in line with demand.
http://timesofindia.indiatimes.com/Business/India_Business/Tata_Motors_M...