The slowdown in Indian automobile industry is forcing some top companies to slash-down their outputs. Last week we reported that the country’s largest car maker Maruti Suzuki has cut down production of its all models, except Swift and DZire. Now, Economic Times has reported that Tata Motors has also slashed car production as the industry is getting ready for worse period in last three years.
“Our production is exactly as per demand. We keep in mind the need to keep inventories at both the company and dealers’ end in balance,” a Tata Motors spokesperson told Economic Times. If there is a requirement for adjustment in production, the company does it. At the moment there is a slowdown in demand, he added, but did not specify details of the cut.
Speaking of the numbers, in the month of July 2011, Tata Motors’ car production was down 26.96% to 19,985 units as against 27,362 units in the same month last year. Its domestic car sales were also down 43.13% to 13,997 units.
Car makers, however, are hoping that a slew of upcoming new launches, including 2011 Maruti Suzuki Swift, Honda’s new Jazz and Brio, Volkswagen’s Jetta, and the recently introduced Beat diesel by General Motors India will help revive the market.
