Tata Aria
Tata Motors has stopped production at its Pune plant for four days starting today – 1 August, 2012. This is second time in less than two months that the company has taken this measure to combat a slowdown in demand for passenger cars. The company sources have confirmed that the step has been taken to limit the inventory pileup.
Tata is not the only one to feel the heat of the slowdown. Many automakers including Toyota, Hyundai and Maruti Suzuki used similar measures in June to combat the slowdown – more specifically for the petrol models.
Among those most affected by the halting of production are the vendors who supply components to factory. Since the automaker sources a majority of its components locally, the closure is expected to have some impact on their production and revenue. Hopefully, this should be a temporary phase and demand should go up once again with the start of festive season.
