Tata Motors to shut heavy vehicle plant for 3 days

Tata Motors to shut heavy vehicle plant for 3 days

Mumbai: India’s largest vehicle maker Tata Motors Ltd is undertaking a block closure of its commercial plant in the western Indian city of Pune for three days from 29 December, a company spokeswoman said on Wednesday.

High interest rates and unavailability of finance had depressed demand for its vehicles, she said.

“So we have to take corrective measures and ensure that inventory does not pile up with us or our dealers."

The Pune plant was closed for three days earlier this month. The company has been undertaking short, block closures of its heavy vehicles plants across various locations since November to align inventory with the slowing demand.

The country’s second largest truck and bus maker Ashok Leyland has been working reduced shifts at its plants, while utility maker Mahindra & Mahindra also said most of its automotive plants would be shut for up to 6 days in December due to easing demand.

In November Tata Motors truck sales dropped 40% from year ago, while total truck sales in the country slumped by nearly half from year ago.

Shares in Tata Motors closed down 1.7% at Rs162.10 while the main was down 2.6%.