Mahindra proclaims ‘No Production Days’ at its manufacturing units
India’s largest UV maker, Mahindra has proclaimed to halt production for three days at its three manufacturing facilities located in Chakan, Nashik and Haridwar. The ‘No Productions Days’ declared by Mahindra will see suspension of production of both passenger and commercial vehicles. Prior to this, the company had announced ‘No Production Days’ at its manufacturing facilities in the beginning of this year. Low sales volume witnessed in last couple of months owing to bleak demand is being cited as the reason behind this step taken by the auto major. Though, the company did its bit to combat low demand for vehicles. Mahindra is developing new vehicles as well as working on the renewed versions of its existing models. Hopefully with the launch of new models in India, Mahindra could witness surge in demand.
The company issued an official statement regarding the same in its BSE filing saying, “As part of aligning its production with sales requirements, (Mahindra & Mahindra) would be observing no production days at the company’s automotive plants for up to three days during the remaining period of May, 2014. The management does not envisage any adverse impact on availability of vehicles in the market due to adequacy of vehicle stocks to serve the market requirements.”
The domestic market has been under the grip of slump with most of the auto makers posting decline in sales. Excise duty cuts effective from February 18th, 2014 could not play the trick to lure the customers. Mahindra was among one of the automotive firms in India that passed on the benefit of excise duty cuts to its passengers. However contrary to the car maker’s expectation the sales volume did not show any signs of revival post price reduction and company witnessed decline in sales by 13 per cent in passenger car segment and 19 per cent in commercial vehicle segment.