India’s largest carmaker Tata Motors and the local unit of General Motors Co. will suspend vehicle production at some factories in India this week to avoid piling up stocks amid tepid demand.
“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.
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.
Also, inventory pile-up and sluggish market demand has forced German-controlled Bosch Ltd to temporarily shut down operations this week at two of its production units in India.
Bosch proposed to suspend the manufacturing operations at its Jaipur plant from June 28 to June 30 and at the Bangalore plant from June 29 to June 30.
This is first stoppage of work at its Bangalore plant since a 16-day strike last year between September 28 and October 13.
Moreover, Tata Motors, the largest commercial vehicle manufacturer, will suspend production at its Jamshedpur factory, where it makes trucks and truck parts, from June 28 to June 30 in order “to align production with demand”, the company said.
Last month, the country’s largest car maker Maruti Suzuki had stopped production of petrol models like the Alto, M800, A-Star, Estilo and Omni for three days to prevent inventories piling up. It is having its week-long annual maintenance shut down this week.