Team-BHP - Impact of Slowdown, TATA shuts down Jamshedpur plant for few days (Maybe pune too)

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TATA Motors has shutdown its Pune based car plant to reduce inventory levels. Plants were producing cars faster then dealers could sell them.

Slowdown ahead? Tata's Pune plant in trouble

All automobile manufacturers are facing this problem.
This is the worst news I am getting as far Indian Automobile manufacturing is concerned.
Frankly speaking I am not able to understand what is this slowdown.
I read it was Jamshedpur plant is shut down for three days.
Source :
Tata Motors to shut plant in Jamshedpur for three days

Article:

Quote:

MUMBAI/LONDON: Tata motors is feeling the heat of slowing demand. It has decided to keep its Jamshedpur plant closed for three days from November 6 t o 8. At the same time, UK-based Jaguar Land Rover (JLR) said it was extending its voluntary redundancy offer scheme to eliminate 400 more jobs.

Tata Motors is effecting what it calls a block closure at its Jamshedpur plant for three days to match production with demand and avoid build-up of inventory in the company or at the dealer-end.

Last month, Tata Motors served a no work notice to around 300 non-permanent workers of this plant, one of its largest plants producing multi-axle vehicles, tractor trailers and tippers.

Sales of trucks especially lorries that haul large goods and consignments are hit by 25-40% last month. This three-day closure is in our Jamshedpur plant, but we are keeping a close watch on the commercial vehicle market scenario, the company said in a statement.

About 95% of commercial vehicles are purchased through financing. While we do not declare production rates, as has been seen in October across the industry, unavailability of finance, coupled with high interest rates, is forcing customers to postpone purchases. We are keeping a close watch on the market scenario, a company official said. However, the car plant is working in its normal manner, the company said.

Hit by the recession, Jaguar Land Rover said it was extending its voluntary redundancy offer scheme, which had received higher-than-expected response. Three weeks ago, around 198 hourly-paid staff took voluntary redundancies. This time, around 400 more are expected to accept the scheme, taking the total number of jobs shed to 600.

the article states about the commercial vehicle segement.what about the passenger car sales?i dont think they are much effected.

Article mentioned in OP talks about slum in car sales for all companies except Hundai and GM.

It's the Jamshedpur plant that is shut for a couple of days, not the car plant in Pune. Mods, please change the title of the thread.

Next to join, Askok Leyland.

Slump time: Ashok Leyland opts for 3-day week- Automobiles-Auto-News By Industry-News-The Economic Times

Quote:

Slackening demand for commercial vehicles (CVs) has forced Ashok Leyland (ALL), the Hinduja Group flagship, to cut its working to three d
ays a week until next month.

Instead of doing all this, why don't they just reduce the price (aka, take a hit at their profits) and hence induce the market to buy???

Guess we will never see such a thing from the Maruti stables!

TATA pune is going in full swing..working in all three shifts :)

Just a minor correction - Tata Motors is shut for 5 days and Telcon-Hitachi is shut for 3 days. I know this as we work closely with the latter and our factory is in the same neighborhood as theirs.

OT: Every manufacturer has routine annual maintenance schedules when they shut down their plants.

The non-routine shutting down is something every manufacturer goes through. Some are reported under the "routine maintenance" front during non-routine times.

HappyWheels, there have been instances in the past when Maruti has chosen to advance "routine maintenance" to times of slowdown. As I said, every manufacturer goes through this.

Quote:

Originally Posted by TheHorse (Post 1044007)

TATA pune is going in full swing..working in all three shifts :)

Ugh.. just another instance where ET pulled news out of thin air :Frustrati

I guess it is not for the vista & CS Unit, as the Vista waiting period is continue to be six weeks in Bangalore

indica plant is in full swing, vista orders are overflowing. well Pune has planned to shut down Commercial Vehicles plant. Even Lucknow has planned for the same as they dint get their aggregates from Jamshedpur.
this is a stop gap arrangement, and maintenance people will do their duty till then.