Auto sector slowdown: Mahindra to shut down plant for 17 days
There will not be any kind of production in the plant of the country’s legendary auto company Mahindra and Mahindra for 17 days. The company has taken this decision at a time when the country’s auto industry is going through a phase of slump.
Mahindra is the second big auto company in the country whose plant productions are shutting down due to cost cutting. Earlier on September 7 and 9, production was not done in Maruti Suzuki’s Manesar-Gurugram plant. At the same time, Ashok Leyland, the flagship company of the Hinduja Group, has announced the closure of the plant for 16 days.
What Mahindra said
According to news agency PTI, Mahindra has given information about the closure of its plant to the stock market. Mahindra has stated that no production will be done during this quarter for an additional 3 days . Actually, on August 9, the company had announced to stop production for 14 days in different plants of the country. After this, the company has now said to keep the plant closed for an additional 3 days.
With this, Mahindra said that it will stop production in the agricultural equipment sector for one to three days by the end of this month. The company said, “Due to the adequate stock of vehicles, the management does not think that this will affect the availability of its vehicles in the market.”
In the month of August, Mahindra’s total sales have fallen by 25 percent. The company’s sales have fallen to 36,085 vehicles. Mahindra sold 48,324 vehicles in August last year, while the country’s vehicle sales figures reached a 20-year low in August. According to SIAM, an association of vehicle manufacturers, the fastest decline in passenger vehicle sales has been registered in August this year after 1997-98.
