With no reprieve from the slowdown in the auto industry, many more companies have decided to halt production temporarily. These include Tata Motors, Hero MotoCorp, TVS Group companies Sundaram-Clayton Limited (SCL) and Lucas TVs, among others. They join Mahindra and Mahindra, Suzuki, Toyota and Ashok Leyland, who have already announced production cuts due to the massive slump in demand.
Tata Motors has decided to halt production at its commercial vehicle facility in Jamshedpur, which will remain closed on August 16 and 17. Tata Motors had earlier shut the unit for a day on August 1 in the first of three block closures. The second block closure was August 8-10 and third block will be from August 16.
“The external environment remains challenging, leading to demand contraction. We have aligned our production to actual demand and adjusted the number of shifts and contractual manpower,” a company spokesperson said .
Ashok Leyland, which closed some of its facilities for nine days the past few months, has issued a notice to its employees that it is declaring August 17 and 19 as non-working day and sixth day non-working day respectively. The measure is in line with the continuing sluggishness in the commercial vehicle market and the need to continue corrective actions to safeguard the interest of the company, it said in the notice.
ALSO READ: Sundaram-Clayton to shut Padi factory for 2 days due to slowdown
The company did not respond to a Business Standard query on the matter.
India's largest two-wheeler maker, Hero MotoCorp, is closing its manufacturing units for four days.
ALSO READ: Four reasons why this auto slowdown is different and the road ahead
"In line with this trend, our manufacturing facilities will be closed from August 15 to 18. While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, and also partly reflects the prevailing market demand scenario," said the company.
ALSO READ: From auto to banking, grumble of slowdown is getting louder for India Inc
Hero MotoCorp has five plants in India. The construction of its sixth at Sricity in Andhra Pradesh's Chittoor district, is at an advanced stage. Its total installed capacity to 11 million units a year.
Sundaram-Clayton Limited (SCL), the holding company of two-wheeler and three-wheeler maker TVS Motor, has declared August 16 and 17, as non-working days at its Padi factory near Chennai. "This is due to business slowdown across sectors," said the company. Part of the $8.5 billion TVS Group, SCL is the leading Indian manufacturer and supplier of aluminium die-cast products to domestic and global automotive OEMS.
Auto component manufacturer Lucas-TVS, part of TVS Group declared non-working days for its employees owing to overall industry slowdown. According to the notification posted by the company's office here, Lucas TVS had already announced non-working days last month.
ALSO READ: Auto sector may start seeing growth between Jan and Apr 2020: TVS Motor CMD
"As the lull in the industry is continuing, a situation has come to reduce the number of working days," the notification shared with the employees aid. Following the development, the company said it has declared non-working days for August 16 and 17, 2019 to its employees.
"A decision will be taken on how to offset the job losses on the non-working days. Employees are requested to extend their cooperation," said the notification.
Mahindra & Mahindra (M&M) has already announced the closure of its plants for 8-14 days in July-September. Similarly, Tata Motors has announced closure for eight days, Maruti Suzuki for three days, Toyota Kirloskar for eight days, Bosch for 10, Jamna Auto for 20, and Wabco for 19, according to reports.
During April to July total production dropped by 10.65 per cent to 9,724,373 units from 10,883,730 units, a year ago. During thus period domestic sales shed 13.90 per cent to 7,910,554 units from 9,187,965 units.
Among the worst hit was M&HCV production, which dropped by 22.35 pre cent to 110,224 units from 141,958 units, a year ago, while passenger vehicles were down 13.18 per cent to 12,13,281 units from 13,97,404 a year ago. Two-wheeler production by 9.96 per cent to 7,84,5675 units from 8,713,476 units, a year ago.
As per auto industry body Society of Indian Automobile Manufacturers, almost 15,000 workers, mostly temporary and casual, have lost jobs in automobile companies over the last two to three months. Dealers association FADA said some 200,000 jobs have been cut across auto dealerships in the last three months.
Tata Motors has decided to halt production at its commercial vehicle facility in Jamshedpur, which will remain closed on August 16 and 17. Tata Motors had earlier shut the unit for a day on August 1 in the first of three block closures. The second block closure was August 8-10 and third block will be from August 16.
“The external environment remains challenging, leading to demand contraction. We have aligned our production to actual demand and adjusted the number of shifts and contractual manpower,” a company spokesperson said .
Ashok Leyland, which closed some of its facilities for nine days the past few months, has issued a notice to its employees that it is declaring August 17 and 19 as non-working day and sixth day non-working day respectively. The measure is in line with the continuing sluggishness in the commercial vehicle market and the need to continue corrective actions to safeguard the interest of the company, it said in the notice.
ALSO READ: Sundaram-Clayton to shut Padi factory for 2 days due to slowdown
The company did not respond to a Business Standard query on the matter.
India's largest two-wheeler maker, Hero MotoCorp, is closing its manufacturing units for four days.
ALSO READ: Four reasons why this auto slowdown is different and the road ahead
"In line with this trend, our manufacturing facilities will be closed from August 15 to 18. While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, and also partly reflects the prevailing market demand scenario," said the company.
ALSO READ: From auto to banking, grumble of slowdown is getting louder for India Inc
Hero MotoCorp has five plants in India. The construction of its sixth at Sricity in Andhra Pradesh's Chittoor district, is at an advanced stage. Its total installed capacity to 11 million units a year.
Sundaram-Clayton Limited (SCL), the holding company of two-wheeler and three-wheeler maker TVS Motor, has declared August 16 and 17, as non-working days at its Padi factory near Chennai. "This is due to business slowdown across sectors," said the company. Part of the $8.5 billion TVS Group, SCL is the leading Indian manufacturer and supplier of aluminium die-cast products to domestic and global automotive OEMS.
Auto component manufacturer Lucas-TVS, part of TVS Group declared non-working days for its employees owing to overall industry slowdown. According to the notification posted by the company's office here, Lucas TVS had already announced non-working days last month.
ALSO READ: Auto sector may start seeing growth between Jan and Apr 2020: TVS Motor CMD
"As the lull in the industry is continuing, a situation has come to reduce the number of working days," the notification shared with the employees aid. Following the development, the company said it has declared non-working days for August 16 and 17, 2019 to its employees.
"A decision will be taken on how to offset the job losses on the non-working days. Employees are requested to extend their cooperation," said the notification.
Mahindra & Mahindra (M&M) has already announced the closure of its plants for 8-14 days in July-September. Similarly, Tata Motors has announced closure for eight days, Maruti Suzuki for three days, Toyota Kirloskar for eight days, Bosch for 10, Jamna Auto for 20, and Wabco for 19, according to reports.
During April to July total production dropped by 10.65 per cent to 9,724,373 units from 10,883,730 units, a year ago. During thus period domestic sales shed 13.90 per cent to 7,910,554 units from 9,187,965 units.
Among the worst hit was M&HCV production, which dropped by 22.35 pre cent to 110,224 units from 141,958 units, a year ago, while passenger vehicles were down 13.18 per cent to 12,13,281 units from 13,97,404 a year ago. Two-wheeler production by 9.96 per cent to 7,84,5675 units from 8,713,476 units, a year ago.
As per auto industry body Society of Indian Automobile Manufacturers, almost 15,000 workers, mostly temporary and casual, have lost jobs in automobile companies over the last two to three months. Dealers association FADA said some 200,000 jobs have been cut across auto dealerships in the last three months.
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