Tata Motors announces a three-day block closure at its Jamshedpur plant

Friday 30 August 2013, 12:50 PM by

The poor condition of Indian car market has been showing the desperate measures taken by auto makers. Demand for cars has been really unimpressive in the past one year, resulting to low revenues and piling up of inventory. In order to overcome the situation, the country's largest auto maker, Tata Motors, has come up with an official announcement to close its block at Jamshedpur plant for three days, starting from 29th of August.

With this recent development, industry experts are of a view that considering the prevailing scenario of Indian auto market, Tata Motors has taken appropriate action to make the level of production parallel to demand. The closure, which will end on 31st of August, has been aimed at preventing the unnecessary raising of inventory at the company stockyards and dealers end.

Sources close to the development process said that the company issued an official circular in this regard during the last week of August. According to the General Secretary of Telco Workers Union (TWU), Chandrabhan Singh, the fall in demand for heavy commercial vehicles and economic slow down are the main reasons behind this move of Tata Motors. “We had produced around 6,000 units of heavy commercial vehicles last month whereas the number was less in the current month,” he added.

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