Tata Motors halts production at Jamshedpur plant

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SME Times News Bureau | 29 Jun, 2012
Tata Motors Thursday halted production at its Jamshedpur plant for three days to adjust production targets with shrinking demand.

"Production at the Jamshedpur plant is being suspended for three days under a block closure for aligning production with demand," a Tata Motors spokesperson told agency in New Delhi.

The Jamshedpur plant of the automobile giant is known for producing commercial vehicles.

According to the official, the halt in production comes in the wake of a slowdown in the domestic economy.

As per the recent data released by the Central Statistics Office last week, India's industrial output grew marginally by 0.1 percent in April due to poor show of capital intensive mining and manufacturing sectors.

The factory output, measured in terms of the Index of Industrial Production (IIP), declined by 3.5 percent in March, the first such contraction in factory output since October 2011, when it shrank by 4.7 percent.

This has in turn effected the sales of key economic activity indicator segment -- medium and heavy commercial vehicles which include trucks and buses -- fell by 10.58 percent at 22,227 units in May 2012 from 24,858 units sold in the corresponding month of last year.

Earlier, the company had halted production at its Pune-based plant for three days starting June 22, 2012.

Other automobile companies too have been observing NPDs (no production day), as high fuel and interest cost have dampened the consumer sentiment in the auto sector, with nearly all categories except that of two-wheelers taking a hit due to these factors.