Tata Motors Ltd, India”s largest vehicle maker, is closing two of its commercial vehicle plants for six days later this month to avoid inventory build-up, a spokesman for the company said on Friday.
Its commercial vehicle plant in Pune, in the western state of Maharashtra, will be shut from Nov. 21-26, while its commercial vehicle plant in Lucknow will be shut from Nov. 10-15, he said.
The cost cutting measures of the car plant has also affected the prospects of ancillary units.
“Due to competition, Tata motors have cut down on its production, shift hours. The decision has also affected our working, our shift hours. Some temporary workers have been laid off. The problem is going to remain for some time,” Suresh Mehtre, president of small industry association at Pimpri in Pune.
Unavailability of finance coupled with high interest rates was forcing customers to postpone purchases, the company said in a statement.
On Wednesday the company announced closure of its commercial vehicle plant in Jamshedpur for three days from Nov. 6.
Shares in Tata Motors closed down 0.3 percent at 158.90 rupees in a Mumbai market, which was up 2.4 percent. (ANI)