Mahindra & Mahindra To Suspend Production For 8-14 Days In Second Quarter Across Plants
Homegrown auto major Mahindra & Mahindra Ltd. said on Friday that it will be suspending automobile production for 8-14 days in the ongoing quarter in various plants to align production with demand.
The company at its automotive sector, and Mahindra Vehicle Manufacturers Ltd., a wholly owned subsidiary, as part of aligning production with sales requirements, would be observing 'no production days' in various plants, M&M said in a regulatory filing. The production suspension will be for 8-14 days during the second quarter of 2019-20, it added.
The company's announcement of production suspension comes at a time when the domestic auto industry has been going through one of the longest sales slumps.
In April-July, M&M's total domestic vehicles sales dipped 8 percent to 1,61,604 units as against 1,75,329 units in the year-ago period. Overall sales of the company, including exports, were also down 8 percent during the period at 1,71,831 units as compared to 1,87,299 units in April-July period of the last fiscal.
"The management does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements," it added.
In July, the company's domestic sales declined 16 percent at 37,474 units as against 44,605 units in the same month last year.