Tata Motors passenger cars gets production cuts
The third largest auto manufacturer by sales, Tata Motors Ltd. has decided to reduce the production of its passenger vehicles with a view to clear the inventory lying in outlets. The news was given by auto parts suppliers. As per the statement made by auto part suppliers, the month target given to them is 7,000-8,000 which is compared to that of earlier months is just half in amount. The suppliers said that the auto maker produce less in the month of April as a higher number of units are delivered in the month of March in order to save in depreciation and thus April month is more about clearing the inventories. This decision helps in maintaining a balanced inventory level in outlets.
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The third largest auto manufacturer by sales, Tata Motors Ltd. has decided to reduce the production of its passenger vehicles with a view to clear the inventory lying in outlets. The news was given by auto parts suppliers.
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As per the statement made by auto part suppliers, the month target given to them is 7,000-8,000 which is compared to that of earlier months is just half in amount. The suppliers said that the auto maker produce less in the month of April as a higher number of units are delivered in the month of March in order to save in depreciation and thus April month is more about clearing the inventories. This decision helps in maintaining a balanced inventory level in outlets.
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If the drop in production of Tata Motors is compared to that of major rivals, the drop is much more. As per the suppliers, production level has never gone so low in Maruti Suzuki India Ltd. On the issue, company’s officials have said that it’s a routine cut down which is followed from time to time.
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If the passenger segment of Tata motors is analyzed we see that the segment is much under pressure due to some big launches from tough rivals. The exception in this case is Tata Nano which is attracting good sales. Tata Motors is loosing its market as in year 2011 it dropped from 17.1% in 2006 to 13%.
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The company was able to reach a sale figure of 27,768 units in the domestic market for the month of March as against that of 27,760 a year earlier. The company is looking forward for better sales with its Tata Manza and Tata Aria.
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