Tata Motors to accelerate maintenance shutdown amid rising stockpiles, declining sales
Tata Motors is set to advance the annual maintenance shutdown of its passenger vehicle plants due to mounting stockpiles-equivalent to up to two months of sales-amid slowing sales across its petrol, CNG and electric cars, multiple people aware of the company's plans said. This is to align production with demand and correct the stock before the calendar year ends, they said.
Typically, auto companies take annual maintenance shutdowns in December to correct stock levels of the ongoing calendar year and make way for the new calendar year models.
Tata Motors would be the first passenger vehicle maker to pare output amid slowing sales this year, people cited above said. Other automakers are likely to take a call on paring their output post the festive season, they added. After a scorching pace of growth for three years, passenger vehicle sales in India hit the slow lane this year. Sales are estimated to have declined in September over the year-ago period, marking a third consecutive month of decline.
With the first leg of the festive season which kicked in with Onam and Ganesh Chaturthi being muted, automakers and their dealers have tempered expectations from the second leg of the season that begins on October 3 with the start of Navratri. Tata Motors' sales decline is steeper than some of its rivals. As a result, the maker of Nexon and Safari models has lost the no 3 position in the market to arch rival Mahindra & Mahindra, both in registration and wholesales volumes in September.
Tata Motors is set to shutter its
