Maruti and other manufacturers shut down factories in June

Automobile manufacturers in India have chosen the month of June for temporary shutdowns of their factories in the country.

India's largest carmaker, Maruti Suzuki is one of the companies that has shut down operations for a while. The company has six plants across Gurgaon and Manesar (Haryana) which will remain shut for eight days. The company claims that the shutdown, which is happening from 22-29 June, 2014 is a part of the regular exercise to maintain its production machines and lines across its multiple factories.

Other manufacturers like Honda Motorcycle & Scooter India, Ashok Leyland and Tata Motors have also observed factory shutdowns during different days in June.

Another reason for the shutdown could be that the Indian automobile sector has been going through its worst slump ever. The economic slowdown has seen car sales slump for two consecutive years. The demand for vehicles has dipped heavily leading to huge inventory pile-ups. The shutdown will help the companies adjust their inventories.

Tata Motors has had to stop production of the Nano at its plant in Sanand due to the poor demand for the car. The economic slowdown has also forced the company to maintain a five-day working schedule at its commercial vehicle factories.

Mahindra, Volkswagen, Skoda and Toyota have also seen a drop in sales in the last fiscal.

Source: ET Auto