Tata Motors decides to go in for production holiday once again

Jamshedpur plant to be shut for five days from November 25.

Tata Motors today said it has decided to shut its Jamshedpur unit, which manufactures commercial vehicles, for five days from November 25 to avoid stock build-up.

This is for the second time this month that the commercial and passenger vehicle maker is going in for a temporary stoppage of production at the Jamshedpur unit. The plant was earlier closed for three days from November 6.

“It has been seen in the month of October across the industry that unavailability of finance coupled with high interest rates is forcing the customers to postpone purchases,” a company release said.

Tata Motors would now go for “appropriate action from time to time to match the production with demand and avoid unnecessary build-up of inventories in the company or with its dealers,” the statement said.

Tata Motors had earlier announced temporary stoppage of commercial vehicle production at Pimpri from November 21 to 26 due to a slump in demand.

The company had earlier said the Lucknow plant will see a block closure from November 10 to15 for adjusting production to demand. Also, the Pune plant will be closed for six days starting November 21. The passenger car plant will, however, operate as usual.

There will be no wage cut for employees during this period and the off days will be counted as paid leave.

The company’s Lucknow plant is one of its youngest production facilities among all the Tata Motors locations. The plant rolls out commercial vehicles and is specialised in the designing and manufacturing of a range of buses which includes low-floor, CNG, RE buses and also specialises in manufacturing high capacity bus system (HCBS) buses.

Apart from the Indica, Indigo, Safari and Sumo passenger vehicles, the Pune plant makes light, medium and heavy commercial vehicles also. The facility employs more than 10,000-12,000 workers.

Chennai-based Ashok Leyland had earlier said that it will keep its manufacturing facilities open for production for only three days in a week. The move is expected to help the Hinduja group flagship company to cut down its high inventory considerably, which had piled up due to falling demand.