Auto components maker Jamna Auto Industries on Thursday said it may suspend production at all its manufacturing facilities this month due to poor demand from customers.
The company is a leading manufacturer of tapered leaf and parabolic springs for commercial vehicles (CVs) and caters to companies like General Motors Co, Toyota Motor Corp and Tata Motors.
The Capital-based firm has nine plants across the country and has recently diversified its range by adding lift axle and air suspension products under technical collaboration with Ridewell Corporation, USA.
“ln view of the weak customer schedule and high inventory, the company has made changes in production schedule at all its plants. The facilities may not run or partially run on all working days in August, 2019,” Jamna Auto Industries said in a regulatory filing.
Plants shall carry out routine maintenance and cleaning during non-working days, it added.
The auto industry has been going on a prolonged slump. Passenger vehicles (PV) segment has been the worst hit with sales continuing to decline for almost a year now.
According to SIAM data, vehicle wholesale across all the categories declined by 12.35 per cent to 60,85,406 units in April-June against 69,42,742 units in same period of last year.
On Wednesday, auto components major Bosch said it woud temporarily stop production at its two plants separately this month for a total of 13 days to “avoid unnecessary build up of inventory”.
Production at the Gangaikondan plant in Tamil Nadu will be suspended for a total of five days on August 10, 16, 17, 24 and 31. Further, production at Nashik plant in Maharashtra will also be suspended for eight days on August 16, 17 and from August 26 to 31.