GM Halts production for One Day at Indian Plants image

GM’s Indian unit will stop auto production for one day at both its plants here to reduce piling stocks amid slow demand in the country.

“We are aligning production on a daily basis as per demand and based on that we decide on certain no-production days to avoid unnecessary inventory buildup,” Lowell Paddock, president and managing director of General Motors India Pvt. Ltd., told reporters Wednesday. “We had a no-production day last week as well.”

Although the company halted production several times this year, production at GM India is still higher compared to the one in 2011. Lowell Paddock did not say if the company plans to make more halts at the two Indian plants, one at Talegaon in western Maharashtra state and one at Halol in western Gujarat state.

The global economic uncertainty and increased interest rates, made the auto sales in India slow down in this year. In the financial year that ended in March sales were up 2.2%, to 2.02 million cars, compared to 30% last year. But Gm plans to boost sales by introducing the Sail U-VA new hatchback in the following months and also the Enjoy, a multipurpose vehicle, in December 2012.