Witnessing slow off-take of heavy commercial vehicles (HCVs) it produces here, Tata Motors has resorted to yet another block closure, the fourth one this year. The fresh four-day closure will be effective between December 28 and December 31. The first one was from November 6 to November 8.
The company on Wednesday said it was keeping its plant shut as ?continuous unavailability of finance coupled with high interest rates right across the industry is forcing customers to postpone purchases?.
Tata Motors has plans to take ?appropriate action from time to time to match production with demand and avoid unnecessary build-up of inventories in the company or with its dealers?.
?This block closure from December 28-31, 2008, is in line with the objective, as was the previous ones,? a company statement said.
Sources in the industrial area of Adityapur, which houses more than 800 ancillary units of Tata Motors and Telcon, has already been affected badly with around 90% of them resorting to widespread lay-offs. Tata Motors currently produces around 80 vehicles a day compared with the peak production of over 600 during the boom period.