Following the lead of commercial vehicle makers announcing drastic cuts in production, passenger car companies too have started adjusting output to reduced demand.

The recent slowdown in the auto industry has seen many production cut downs to avoid further inventory pile-up at the dealer end.

Major carmakers have also asked top component suppliers to cut production of auto parts by 5-7%. There are predictions that more reductions are likely in the near future.

Among the leading carmakers cutting down on production are: Maruti Suzuki India that has scaled back production by about 300 units a day in the October schedule. Then, there is Tata Motors, which appeared to be mulling a closure of its commercial vehicle plant at Pune for six days this month to avoid inventory build-up.

The company is also believed to have told component suppliers to scale down supplies for its Indica model by at least 10%. Honda Siel Cars India has seen a dip in production by about 5%. Production of Mahindra Renault India’s Logan is also down by as much as 30%.

However the good news is that, the American car companies General Motors and Ford have remained largely unscathed. Hyundai Motor India is also witnessing an upsurge in production, thanks to booming exports and the impending launch of i20 model.

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Posted by Nilakshi Handique on 10 November, 2008 12:41:12 PM IST #