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Utility vehicle market leader Mahindra & Mahindra (M&M) has decided to extend production holidays in the coming months too as retail demand hits new lows every day.
In a disclosure to the stock exchanges the Mumbai-based company said that it observe no production days for up to six days in the forthcoming months. This is mainly done to align production with sales requirements.
This is the second such announcement this financial year of a planned shutdown by the company. Last month M&M had declared stoppage of production from 1 to 8 days in an effort to bring output in line with demand.
Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, 'Over the last few months, the auto industry has been going through one of its worst phases of the last decade with planned shutdowns being taken by companies to correct demand-supply mismatch.'
The production holiday, like last month, will be observed across all of M&M's plant including its biggest plant in Chakan operated by its wholly owned subsidiary Mahindra Vehicle Manufacturers.
The management would be having a close watch on the market conditions and would from time to time be reviewing such No Production Days to adjust production in line with the demand, the statement added.
'The industry is in desperate need for an immediate stimulus from the government. With interest rates remaining unchanged and the rupee plunging to new lows, lowering of excise duty is the need of the hour which will rev up demand for auto products, leading up to the festive season', added Shah
