Tata Motors plant in fifth block closure of truck unit
“We expect the M&HCV segment to remain under pressure until certain policy measures relating to mining and infrastructure are announced by the government in the coming budget,” said Sudarshan Shreenivas, associate director – corporate, India Ratings. “We expect the trend of shutdowns to continue for now on both cars as well as M&HCVs,” he added.
“The market situation isn’t okay as yet; we are still in recession; we are producing chassis strictly as per market demand as raising inventory levels would only block funds,” said Chandrabhan Singh, general secretary, TWU, adding that an Army order the management was expecting hadn’t materialised so far.
Singh said though the government had announced some measures to kick-start the economy, there wasn’t enough mining activity taking place yet either in the coal or iron ore belts in the country which would spur demand.
Slow offtake of commercial vehicles has also forced adjunct units here like that of Tata Cummins, which supplies engines to the auto major, as well as that of subsidiary TML Drivelines, which produces axles and transmission systems, to act in sync and observe a similar production shutdown.
RK Sinha, president, Adityapur Small Industries Association (ASIA), a forum of around 1,000-odd medium and small ancillary units supplying aggregates and parts to Tata Motors here told FE that though the current three-day block closure matched with Makar-Tusu-Lohri festivities, which
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