Maruti shuts plants for maintenance, so does Tata and Honda

Maruti Suzuki’s six plants across Gurgaon and Manesar are in an eight day shut down mode from June 22-29, 2014. This is a part of the company’s bi-annual shut down policy, to allow the company to maintain machinery and streamline its inventory. Apart from Maruti, Tata, Honda and Ashok Leyland are also carrying out this activity in June.

tata shuts sanand plantMaruti Suzuki produces 5,000 units per day from its Gurgaon and Manesar plants with an installed capacity of around 15 lakh cars per annum. The slowdown in the automobile sector has taken its toll on most automakers in the country, with Maruti Suzuki reporting lower than expected sales.

Other leading automakers such as Tata Motors, Ashok Leyland and Honda Motorcycles and Scooters India are also facing the same scenario and are also resorting to plant shut downs in the month of June to align stocks.

Tata Motors has shut down its commercial vehicle plant in both Jamshedpur and Lucknow due to piling up inventory which is the same reason why the Tata Motors plant in Sanand, Gujarat from where the Nano is produced has also been shutdown.

With Toyota Kirloskar Motors, Mahindra & Mahindra, Volkswagen and Skoda Auto all having the same sorry tale of sales woes the only silver lining is in the government’s decision to extend reduced excise rates till December 31. The reduction in excise duty was first given to the auto sector earlier this year in the interim budget. It added some impetus to sagging sales, but was applicable only till June 30. However, the recent announcement of extension will go a long way in helping this sector overcome the prolonged demand slump.

via Economic Times