Tata Motors, the country's largest automobile maker, will shut the commercial vehicles plants in Pune and Lucknow for six days this month due to diminishing demand.
In a statement issued today, the company said the Lucknow plant will see a block closure from November 10-15 to adjust production to demand. The Pune plant will also 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, a company spokesperson said.
The decision comes just two days after Tata Motors announced a 'block closure' at its Jamshedpur plant where it makes tippers, multi-axle heavy trucks and tractor-trailers.
"As has been seen in the month of October 2008 across the industry, unavailability of finance, coupled with high interest rates, is forcing customers to postpone purchases. Different segments of the automobile industry have been impacted at different levels. This will call for appropriate action from Tata Motors, from time to time, to match production with demand and avoid unnecessary build-up of inventory in the company or with the company's dealers," said a company release.
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 yesterday 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.