The Hindu Business Line : M&M opts for partial closure due to demand slowdown

Mumbai, Dec. 6 Following Tata Motors and Ashok Leyland, the country’s largest utility vehicle maker Mahindra & Mahindra also has chosen to go in for a partial shutdown of its plants this month.

“The manufacturing plants of the automotive sector — Nashik, Kandivli, Igatpuri, Zaheerabad and Haridwar — will work partially during the month. Most will be shut down for around three-six days depending on the market demand of the products manufactured in the respective plants,” M&M said in a statement issued to the BSE.

The company has attributed the production cut-down and temporary closure to the slowdown in demand. “Taking into account the slowdown in demand for the company’s products it has been decided to align the production plan with the expected demand for December,” the statement said.

“December is anyway a low time for auto sales as customers put off their purchase to January. We have taken that too into consideration while announcing production cut. Our inventory level is now slightly above our norms and we are anticipating poor sales in December. So we are a bit careful about our inventories not getting out of hand,” Mr Rajesh Jejurikar, Chief of Operations, Mahindra & Mahindra, told Business Line.

“So far there have not been any lay-offs,” Mr Jejurikar said about the job situation in Mahindra plants. About wages during the period of shut-down, he said “this is something internal that we do not want to disclose”.

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