Due to slowdown in the automobile sector and fall in sales Mahindra & Mahindra on Friday announced it will suspend production at its automotive manufacturing plants in the ongoing quarter, ranging between 8-17 days, in order to adjust production with sales requirements.
The company had earlier said in August that it would be observing no production days for 8-14 days across its automotive sector plants in the July-September quarter.
The homegrown auto major would suspend production for three additional days during the quarter as compared to the disclosure made on August, 9, 2019, Mahindra & Mahindra said in a regulatory filing.
Besides, the company said it will observe no production days in the farm equipment sector ranging between 1-3 days by the end of this month.
“The management does not envisage any adverse impact on the availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements,” it added.
Earlier this week, Hinduja Group flagship firm Ashok Leyland had announced 16 non-working days at its various manufacturing facilities following weak demand.
The auto industry in the country is going through a slowdown for the past few months largely due to liquidity constraints as well as high GST rates and interest costs. In July, M&M’s total vehicle sales fell 15 percent on a year-on-year basis to 40,142 units.