INDIAN AUTOMOBILE MANUFACTURERS SHUT MANUFACTURING PLANTS TEMPORARILY TO CLEAR UNSOLD INVENTORY

June 11, 2019 |
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Lifestyle
INDIAN AUTOMOBILE MANUFACTURERS SHUT MANUFACTURING PLANTS TEMPORARILY TO CLEAR UNSOLD INVENTORY

According to an ET Auto report, more than half a million passenger vehicles worth $5 billion (nearly Rs 35,000 crore) are lying with the dealerships that have not been sold yet in the first week of June. The scene is equally terrible for the two-wheeler segment where the number is said to be $2.5 billion. Companies such as Tata Motors, Mahindra and Maruti Suzuki have already announced their plant shut down schedules between May and June. "What's the point in producing and pushing stock when the offtake is weak. We have calibrated our production based on demand in May and we will do so in June too," commented Mayank Pareek, president of the passenger vehicle division, Tata Motors.

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