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Auto Companies stop Production - Hit by demand slump

Discussion in 'Fiat India News' started by saipv, Jun 19, 2012.

  1. saipv

    saipv Amatore

  2. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    This is not limited to Fiat, I think all auto companies are planning on similar lines.

    With current economic environment, the near term future is bleak for auto companies, specially Petrol cars.
  3. fiatlover

    fiatlover Esperto

    Grande Punto 1.4
  4. pammuluvcars

    pammuluvcars Regolare

    Auto companies stop production as demand slump continues

    NEW DELHI: Hit by a demand slump, Toyota Kirloskar Motor has stopped production of petrol cars, while others like Fiat are considering shutting down plants for a few days next month.

    While Tata Motors will stop production of commercial vehicles at Pune for three days this week, Maruti Suzuki India will be having its week-long annual maintenance shut down from next week.

    "We are having some amount of inventory for our petrol cars and it has gone up to over 30 days. To control the stock from piling up further, we have stopped production of our entire range of petrol cars from June 16," Toyota Kirloskar Motor (TKM) deputy managing director (commercial) Shekar Viswanathan told PTI. He, however, did not share the company's plans on how long the petrol car production will continue to be withheld.

    TKM rolls out petrol variants of its small car Liva, sedans Etios and Corolla Altis. It also produces a petrol variant of Innova on-demand.

    Viswanathan said the company's sales of diesel vehicles are steady, but the waiting periods are coming down.

    According to Society of Indian Automobile Manufacturers (Siam) data, TKM had rolled out over two-fold more passenger cars in May that stood at 8,511 units.

    Expressing similar sentiments, Fiat India Automobiles Ltd (FIAL) said its petrol models are not selling well and it is monitoring the inventory situation at present.

    "Depending upon the demand and inventory situation, we may shut down our plant for 2-3 days next month. Currently we are monitoring the inventories at both raw material and vehicles production sides," FIAL president and CEO Rajeev Kapoor said.

    The company, which has a joint venture manufacturing facility with Tata Motors at Ranjangaon in Maharashtra, will decide about the closure of the plant in consultation with the partner, he added.

    FIAL's car production in last month went down by 57.13% to 1,041 units, SIAM had said.

    Courtesy: Times Of India news....
    Last edited: Jun 19, 2012
    2 people like this.
  5. puntosat

    puntosat Superiore

    In TOI tdy..read Maruti,TATA & FIAT are stooping production for few days this month as inventory is piling up..

    For FIAT its specifically the petrol cars which are piled up...Fiat CEO says..
    Last edited by a moderator: Jun 20, 2012
  6. Tony

    Tony Esperto

    Kalamboli, Navi Mumbai
    Grande Punto 1.2
    Yeah its only due to the Hike in Petrol Price, Toyota has the max of its Cars pilled up next to Chevrolet.
    TOI also said that the General Manager of the Auto Industry (Name not mentioned) said that the Govt. is just raising the price of petrol's compared to the rates of Diesel.

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