Auto component major Bosch Ltd today said it will temporarily shut its manufacturing plants in Jaipur and Bangalore this week to prevent inventory pile up due to slowdown in the market.
"It is proposed to suspend the manufacturing operations at the company's Jaipur plant from June 28, 2012 to June 30, 2012 and at the company's Bangalore plant from June 29, 2012 to June 30, 2012," the company said in a filing to the BSE.
The company is undertaking this step in order to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it added.
Bosch supplies various parts, including critical engine components, to many automobile manufacturers in India.
With vehicle sales continuing to dwindle due to high interest rates and petrol prices, many automobile manufacturers in India are shutting down their plants temporarily to reduce inventories.
Production will be halted at Tata Motors' Jamshedpur plant for three days from tomorrow because of the slowdown. It had earlier this month stopped production of commercial vehicles at Pune for three days.
General Motors India today said it is constantly adjusting demand and production at its two facilities -- Halol in Gujarat and the Talegaon in Maharashtra.
Fiat India is considering shutting down plant for a few days next month. Toyota Kirloskar Motor too has rationalised production of its petrol cars due to low demand.
Last month, the country's largest car maker Maruti Suzuki had stopped production of petrol models, like the Alto, M800, A-Star, Estilo and Omni for three days to prevent inventories piling up. It is having its week-long annual maintenance shut down this week.
