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Old 18th January 2014, 13:10   #1
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Default M&M to halt production for 3 days (Jan 2014)

Mahindra and Mahindra Ltd, India's largest utility vehicle maker, said it would halt production for up to 3 days in current month, at its automotive factories to align output with sales. More details here:

http://profit.ndtv.com/news/industri...january-378020

Seemingly, fall in sales has M&M adversely & they too have to resort to production stoppage. Tata too did the same in past month (s).
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Old 18th January 2014, 13:25   #2
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Default re: M&M to halt production for 3 days (Jan 2014)

I think almost every manufacturer is facing this situation. They are struggling to align the balance of production with sales. They resort to these measures when the dealers are also stuffed with at least a months inventory.

Indian largest car manufacturer Maruti Suzuki was also forced to shut production sometime back.

The rising loans, slowing economy and insecurity in jobs are some of the reasons for these situations.
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Old 18th January 2014, 13:29   #3
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Default re: M&M to halt production for 3 days (Jan 2014)

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Originally Posted by CARDEEP View Post
Mahindra and Mahindra Ltd, India's largest utility vehicle maker, said it would halt production for up to 3 days in current month, at its automotive factories to align output with sales. More details here:

http://profit.ndtv.com/news/industri...january-378020

Seemingly, fall in sales has M&M adversely & they too have to resort to production stoppage. Tata too did the same in past month (s).
In a way, I welcome this as there will be NO old stocks and customers can get a fresher piece. Yeah, the backlash will be lesser discounts, but this is safer I believe.
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Old 18th January 2014, 14:24   #4
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Default re: M&M to halt production for 3 days (Jan 2014)

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Seemingly, fall in sales has M&M adversely & they too have to resort to production stoppage. Tata too did the same in past month (s).


What is there to be so frustrated about? (query in regard to the smiley you used)

M&M are building cars judging by the demand that there is. Also plenty of cars are made in December, and very less sales in December, so understandably there is backlog.
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Old 18th January 2014, 15:24   #5
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Default Re: M&M to halt production for 3 days (Jan 2014)

Frustration is regarding the drastic fall in sales Indian auto majors are facing, majorly because of their faults & to small extent because of consumers' preference for foreign cars, not all of which have excellent reliability record.
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Old 18th January 2014, 18:03   #6
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Default Re: M&M to halt production for 3 days (Jan 2014)

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Frustration is regarding the drastic fall in sales Indian auto majors are facing, majorly because of their faults & to small extent because of consumers' preference for foreign cars, not all of which have excellent reliability record.
I do NOT think customer's preferences have changed the dynamics much. This is more to do with the consistent price hikes which have taken the prices of models to higher levels. Add to it, the rising prices of diesel too - a large section will start thinking of delaying their purchases. For Mahindra, most of their products will be a second or third car for the consumers, they will try to hold on to their cars for a bit more while before taking a decision.
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Old 18th January 2014, 20:31   #7
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Default Re: M&M to halt production for 3 days (Jan 2014)

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The rising loans, slowing economy and insecurity in jobs are some of the reasons for these situations.
Considering cpi is stabilizing , looks like the worst of the recent inflation nightmare seems to be over. Hopefully this will trigger an interest rate cut, and loans will be less of a burden.
IMHO the economy itself can only really recover, once the political situation is clear (i.e. new government has a clear mandate).
IIRC the job market cycles usually lags the rest of the economy by 2~3 quarters.
So it looks like a long haul.
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Old 18th January 2014, 21:29   #8
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Default Re: M&M to halt production for 3 days (Jan 2014)

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Frustration is regarding the drastic fall in sales Indian auto majors are facing, majorly because of their faults & to small extent because of consumers' preference for foreign cars, not all of which have excellent reliability record.


I dont think the fall is due to niggles. I think the fall is due to a general slowdown that the Auto industry is experiencing as a whole, and is not confined to Indian manufacturers.
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Old 20th January 2014, 08:30   #9
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Default Re: M&M to halt production for 3 days (Jan 2014)

It is the norm in industry to stop production to align with the demand.
However, what suprises me is the timing Mahindra choose.
Most of the OEM's prefer the calendar year ends or half year ends.
Further, April is also considered as low production in CV's.

As some one earlier mentioned, good for customers in not getting the old stocks.
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Old 20th January 2014, 11:21   #10
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Default Re: M&M to halt production for 3 days (Jan 2014)

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I dont think the fall is due to niggles. I think the fall is due to a general slowdown that the Auto industry is experiencing as a whole, and is not confined to Indian manufacturers.
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Originally Posted by swiftnfurious View Post
I do NOT think customer's preferences have changed the dynamics much. This is more to do with the consistent price hikes which have taken the prices of models to higher levels. Add to it, the rising prices of diesel too - a large section will start thinking of delaying their purchases. For Mahindra, most of their products will be a second or third car for the consumers, they will try to hold on to their cars for a bit more while before taking a decision.
It not just the slowdown or changing customers' preference, but, definitely quality as well, XUV500 has not been as niggle free as one would expect, especially after Scorpio, which had covered a lot of ground on the quality aspect & won laurels for M&M. Even the W4 variant, which is has lesser (& problematic) gizmos hasn't helped the cause, even though M&M provides excellent aftersales support to XUV500. IMO XUV500 & Xylo are the ones, which are slowly losing steam to likes smaller SUVs (EcoSport & Duster/ Terrano, even if these aren't as special as one would expect).

IMO TML & M&M are losing sales at a rapid pace as compared to foreign players, which is another rant from my side. Other, barring Suzuki & Hyundai, too have seen fall, but the fall isn't as bad as these companies & is to great extent because of the issues I have blurted in opening post.

Hope this clears my views to all.
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Old 20th January 2014, 11:52   #11
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Default Re: M&M to halt production for 3 days (Jan 2014)

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Originally Posted by CARDEEP View Post
It not just the slowdown or changing customers' preference, but, definitely quality as well, XUV500 has not been as niggle free as one would expect, especially after Scorpio, which had covered a lot of ground on the quality aspect & won laurels for M&M. Even the W4 variant, which is has lesser (& problematic) gizmos hasn't helped the cause, even though M&M provides excellent aftersales support to XUV500. IMO XUV500 & Xylo are the ones, which are slowly losing steam to likes smaller SUVs (EcoSport & Duster/ Terrano, even if these aren't as special as one would expect).

IMO TML & M&M are losing sales at a rapid pace as compared to foreign players, which is another rant from my side. Other, barring Suzuki & Hyundai, too have seen fall, but the fall isn't as bad as these companies & is to great extent because of the issues I have blurted in opening post.

Hope this clears my views to all.

In addition to this, thanks to the proposed removal of subsidy on diesel price coupled with high taxes and raising inflation. People are thinking twice to go for diesel mills.
Hope, its time again for the Govt to help Auto OEM's and the industry by changing some policies, as discussed in some other threads recently in this forum.
CV market is still struggling to come to terms with the slow down.
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Old 20th January 2014, 15:12   #12
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Default Re: M&M to halt production for 3 days (Jan 2014)

AFAIK Tata has been working 4 days a week in single shifts since the last 2 years. No lay-off's yet.

Whats happened is that, like companies, the people in Tier-I/Metro cities have become wiser & are converting fixed costs to variable costs - even if they came at a slight premium (Meaning to say : People are increasingly hiring taxi's and other modes for travel - which, apart from lending flexibility even saves them the time & money otherwise spent on ownership & maintenance).

Also IMO, having barely recovered part of the expected returns from the current product lineup, some auto-makers have been indirectly become scape-goats especially thanks to the corrupt, greed-driven tax-hungry government (3% addnl ED based on how high the vehicle rides - for SUV makers who're helping us travel over so many 3rd grade roads!) & oil marketing companies (as fuel prices keep rising over time, people will keep demanding better Fuel Economy).

Moreover govt isn't even listening to auto-makers appealing for better policies (wrt mining, construction activities etc), schemes like cash-for-clunkers or even better infrastructure. IMO lending such a cold shoulder is quite rough on auto-makers. Anyway.

My opinion on how to counter this over the long term has still not changed : Re-building brand is only going to help marginally. To reduce/check product aversion, the service & ownership of a 'Good' 10L car should at the least be ABSOLUTELY hassle free.

Also, what auto-makers can and should do now is - concentrate on trying to give car/travel related Value-added products/services along with the impeccable service experience for the same prices (as its a given that they're not going to let the 'product value' diminish by slashing prices further or go anything close to a price war).

Last edited by GrammarNazi : 20th January 2014 at 15:22.
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Old 21st May 2014, 16:31   #13
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Default Re: M&M to halt production for 3 days (Jan 2014)

M&M is halting their production again in May -- second time in less than 6 months to align production with sales.

http://profit.ndtv.com/news/corporates/article-mahindra-mahindra-to-stop-production-for-3-days-during-this-month-388997
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