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M&M may cut production, temporarily shut plants

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 10:54 PM IST

Auto major Mahindra & Mahindra (M&M) today said it could cut down productions and temporarily shut plants due to slowdown in sales in domestic as well as overseas markets.

"Our production will always be as per sales. As there is still slowdown in the market, so we will not over-produce," M&M President (Automotive Sector) Pawan Goenka told reporters on the sidelines of JK Tyre Baja Sae India conference here.

The company would not unnecessarily build up inventories at its facilities as well as with the dealers, he added.

When asked if M&M would temporarily shut down its plants in line with other auto makers, Goenka said: "If situation demands, we will shut down plant. We will take a day-to-day decision."

He said along with domestic market, exports were also facing slowdown in each countries, where M&M is present.

The company, which sells its vehicles in Brazil, Chile, South Africa, Egypt, other African nations and neighbouring countries, witnessed a drop of 20-25 per cent in exports in November, Goenka said.

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M&M's plan to enter the US market with its sports utility vehicle 'Scorpio' was on track and the company is expected to launch the SUV there by the end of 2009, he added.

Goenka said construction of the company's upcoming facility at Chakan was also on track and would be launched by end of 2009.

"We expect to launch our small four-wheeler (LCV) in the third quarter of 2009, while the truck platform will be launched by the fourth quarter of next year," he added.

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First Published: Dec 01 2008 | 7:23 PM IST

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