General Motors is planning to halt its Indian production output for a day at both its facility plants on any of the day this week. The main aim to freeze manufacturing is because of increased piled up inventory due to sagging auto demand in Indian auto market.
The President and Managing Director of General Motors India Pvt. Ltd., Mr. Lowell Paddock commented, “We are positioning the production output on day to day basis as per demand. We’ve planned to block the production for one day in order to avoid unnecessary inventory buildup. We had a no-production day last week as well and now there will be one this week too.”
According to Mr. Paddock, the car production in India at GM’s factories is still bit higher as compared to 2011. As of now he did not confirm any dates for further production halts. General Motors India has one facility plant at Halol in Gujarat and the other assembly at Talegaon in Maharashtra.
The auto sale in India is getting stingy after sudden alteration in economy and market conditions with hike in interest rates as well as petrol prices. As per specifications, car sales sank 2.2% in the year till March as against to 30% boost in 2011.
The noticeable aspect is that the market confronted sudden fillip in diesel car sales since June 2010 and the key reason behind the same was a major lift in petrol prices. Furthermore Mr. Paddock mentioned, “As of now we are witnessing global uncertainty and the same is not confined to India only. And therefore it will be tough to set numbers in terms of sales target for this year.”
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