Amid sluggish market demand, auto major Tata Motors has announced four-day block starting from August 1 at its Jamshedpur plant.

The plant, with over 10,000 permanent and non-permanent workforce, which produces trucks, trailers, trippers and other multi axel vehicles, would remain closed till August 4. The company that used to manufacturer around 12,000 vehicles per month is now forced to manufacture around 3,500 vehicles. Due to downfall in the demand, the company has curtailed its production.

An official of Tata Motors said: “Under the prevailing market scenario, the company has to take appropriate action from time to time to match the production with demand and avoid unnecessary buildup of inventories in the company or with the dealers”.

Meanwhile, the Adityapur industrial area, which is one the largest industrial belts in Asia, is feeling the pinch of the slow down. “We are facing tough time because of the market slow down. The market conditions are not favourable. In place of three shifts, the (ancillary) units are operating one shift a day during the last three weeks and we do not expect any sign of improvement in the near future," said an official of Adityapur Small Industries Association (ASIA).

It may be noted that the sprawling Adityapur Industrial Area houses 1,100 units- including 11 large-scale, 64 small scale and 166 tiny industries. A few important industries that have global presence are Usha Martin Group, RSB Group, Tata Steel Growth Shop (TGS) etc., too situated in this industrial belt, situated in Seraikela-Kharsawan.

Vendors are facing perhaps their toughest challenge yet, with orders coming down to a mere trickle, even as principals such as Tata Motors have drastically cut production to tide over tough times.

According to information, these industrial units are also taking elaborate measures to control costs. Many have reduced the use of commercial generators at their premises. Other facilities like use of company vehicles are also being restricted. Plans are also being made to introduce no work half payment policy for the workers whose job is permanent in nature and also reduce the fringe benefits given to the officials.

The slowdown has affected scores of industrial workers employed in the country’s densely populated ancillary hub at Adityapur in the neighbouring  Seraikela-Kharswan district.

In the past three weeks, several workers have been retrenched from jobs owing to abnormal cut in the work order from the global automobile companies. In the past one month, the ancillaries have suffered loss of about Rs 400 crore by conservative estimate, said industry insiders.