Mumbai: Mahindra and Mahindra Ltd, India’s third-largest passenger vehicle maker by sales, said it will halt production at its automotive plants for a period ranging from 1-8 days during the remaining part of the month to clear unsold stocks.
Mahindra Vehicle Manufacturers Ltd, a wholly owned unit, will stop production for about eight days at its Chakan plant. The company does not expect any adverse impact on availability of vehicles in the market because of adequacy of vehicle stocks to serve the market requirements, it said.
The announcement by India’s largest utility vehicle and tractor maker comes after Maruti Suzuki India Ltd, the nation’s largest car maker, announced on 9 June that it will cut production to clear inventory. Fitch group’s India Ratings downgraded its outlook on the auto sector on 10 June as car buyers stay off the showrooms owing to a slowing economy and high cost of ownership.
Shares of Mahindra rose 1.33% to Rs.924 at 11:20 am on the BSE. The exchange’s benchmark Sensex gaiined 2.04% to 19,687 points.