Mumbai: Tata Motors, the country’s largest commercial vehicle manufacturer, will shut down one of its factories for three days this week, in the latest closure of a vehicle plant and another sign of slowing growth in the country.
India’s economic growth slumped to its lowest level in nine years in the first three months of 2012, with the country’s manufacturing output -- a key driver of commercial vehicle demand -- shrinking by 0.3%.
Tata will suspend production at its Jamshedpur factory, where it makes trucks and truck parts, from 28-30 June, a company spokesman said. The closure is in order “to align production with demand,” the spokesman added.
Tata has already closed its Pune plant for three days this month, while top carmaker Maruti Suzuki and Toyota Motor’s Indian unit have chosen to temporarily reduce production in recent weeks on falling demand.
The country’s car sales grew just 2.2% in the fiscal year that ended in March, due to high interest rates and rising fuel prices.