Car Manufactures To Shut Factories For One Week
Four of the biggest manufacturers of cars in India which are Maruti Suzuki, Honda, Tata Motors and Renault Nissan have decided to shut down their factories for 5 to 13 days.
Four of the biggest manufacturers of cars in India are Maruti Suzuki, Honda, Tata Motors and Renault Nissan will be shutting down there plants for 5 to 13 days. The reason given by all the manufacturers was the same. They said that there were too many unsold cars sitting at dealerships. More than 5 lakh cars worth around Rs 35,000 crore are yet to be sold.
Sales in the passenger vehicle have slowed down in the past seven months, due to slowing job growth and rising fuel prices. The companies hope that with this shutdown there will lead to a 20-25% reduction in their production. This will reduce pressure on the full stockyards at factories and dealerships. Mayank Pareek, President of passenger vehicles at Tata Motors said; what is the point in producing and pushing stock to dealers if they are not selling cars.