The Hush Post| 10:49 am |two-minute-read|
India automotive industry is undergoing a major shift. Many of the manufacturers are closing their plants temporarily to adjust with the demand of the automobiles in the market.
TVS group auto component maker Sundaram-Clayton Ltd (SCL) has said it will be shutting its Padi factory in Tamil Nadu for two days due to slow-down in the automotive industry. With this, they have joined the two-wheeler major Hero MotoCorp which also announced closure of its plants for four days.
SCL, a manufacturer and supplier of aluminium die cast products to domestic and global automotive OEMS, said it had declared August 16 and 17, 2019, as non-working days for its Padi factory.
“This is due to business slowdown across sectors,” Sundaram-Clayton Ltd said in a statement.
The slowdown in the automobile industry has forced many manufacturers and component suppliers to reduce production.
Earlier, Hero MotoCorp said its manufacturing plants have been closed for four days from August 15-18 as part of annual routine and also to adjust production in line with current market demand.
“While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, it also partly reflects the prevailing market demand,” Hero MotoCorp added.
Earlier in August, auto components major Bosch Ltd had also announced that it would temporarily stop production for a total of 13 days across its two plants at Gangaikondan, Tamil Nadu and Nashik, Maharashtra.
Bosch Ltd managing director Soumitra Bhattacharya said that the country’s auto industry was going on a major shift making the outlook of the industry extremely challenging.
He said there would be “manpower adjustments” although “every opportunity will be extended for reskilling and redeployment, to align with adjustment of portfolios and competencies”.
Homegrown auto majors Tata Motors and Mahindra & Mahindra (M&M) had also said they were suspending automobile manufacturing to adjust production with demand.
M&M will suspend production for 8-14 days in the ongoing quarter.