Mahindra & Mahindra (M&M), India’s leading manufacturers of utility vehicles (UVs) and it’s wholly owned subsidiary, Mahindra Vehicle Manufacturers Limited (MVML), has notified BSE that it will be observing no production days for 8-14 days across plants in Q2FY20.
“The Company at its Automotive Sector, and Mahindra Vehicle Manufacturers Limited, a wholly owned subsidiary of the Company ("MVML"), as part of aligning its production with sales requirements, would be observing 'No Production Days' ranging between 8 -14 days in various plants of the Company and MVML during the second quarter of the Financial Year 2019-2020," it said in the public notification.
The step is taken as a measure to control the accumulating inventory of passenger vehicles across its dealership network and at the stockyards at its manufacturing plants. The company saw a decline of 15% and 16% year-on-year in passenger car and commercial vehicle wholesales respectively in July, as a direct result of the downsizing of vehicle production in previous month(s).
The company also said that it does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements.