The Indian arm of German auto components major Bosch has once again gone for production cuts at its plant in Tamil Nadu. In addition to its TN plant at Gangaikondan, the company has also decided to suspend production at its plant in Nashik, Maharashtra.
In a communication to the stock exchanges, the company said with a view to adjust production to meet the demand for products and to avoid unnecessary build-up of inventory, it is proposed to suspend all manufacturing operations at the company’s plants in Gangaikondan and Nashik.
As per its disclosure, the company has once again decided to go for production cut for five days in the Gangaikondan plant (August 10, 16, 17, 24 and 31). It had earlier suspended the production at this same plant for five days between July 23 and 27, 2019.
Similarly, production at its Nashik plant in Maharashtra will be suspended for eight days on August 16 and 17, and between 26 and 31. Earlier it had gone for production suspension at its plant in Bidadi (Karnataka) for three days (August 1 to 3) and in the Jaipur plant for a day on July 27, Nagarathapura plant in Karnataka for 2 days on July 27 and 29 due to weak demand.
It is to be noted two days ago, another major parts maker Wabco India announced production cut across its plants in India for a number of days.
Earlier, OEMs like Ashok Leyland and Tata Motors have gone on production cuts at its plants. Some of the other major OEMs as well parts makers are mulling production suspension at their plants due to continued weak demand. Even Mahindra & Mahindra started feeling the heat and warned of threat on the sector.
Automotive bodies like SIAM, ACMA and FADA have been demanding that the government should not only bring down the GST rate sharply, but also come out with some sort of stimulus package to offset the slowdown blues.