Tata Motors is experiencing weak sales performance for quite some time now. The economic condition prevailing is not in favor of the car maker and this has forced the same to bring the production at its Jamshedpur plant to a halt. For three days i.e. 28th to 30th of June the production at the company’s Jamshedpur plant will be stopped in order to counter the shrinking sales.
An official from Tata Motors,Mr. PJ Singh said,
“Tata has announced a block closure from 28th to 30th of June in its Jamshedpur manufacturing plant. Moreover, we are a market driven brand and that is the reason why we have opted for the same.”
The official said that the decision was taken after viewing the quarterly closing as the company feels piling up inventory at their respective dealers is not a good practice. A meeting was conducted in which the consent of the company’s employees was taken following which the decision was taken.
According to Chandrabhan Singh, General Secretary of Telco Workers Union the sales of Tata Motors is declining since last two months. This three day closure will be adjusted against the leaves of its employees while the rest will be paid by the company itself. Close to 10,000 workers will be affected by the closure.
The halt came into effect yesterday and it brought down the company’s shares by 1 percent early the same day. The shares further lost ground and went down by 1.46 percent on the BSE and by 1.65 percent on the NSE.
Tata Motors is not the only automobile major in India to cut its production, we have seen Maruti Suzuki, General Motors and other major car makers in India doing production cuts or going for no production days at their plants to keep the inventory levels under check so as to sync up with the reduced demand for cars. There are many uncertainties attached to the prices of both petrol and diesel in India and to add to it, there is all time high inflation, dull economy and weak currency all adding up to the worries of Indian industry and the common man of India.
We hope the economy gets back on track soon, we will keep you posted on the latest updates, stay tuned.