Hit by slump in the commercial vehicle market, Tata Motors, Jamshedpur Plant would take block closure from August 29 to August 31. A Press communiqué issued by PJ Singh, spokesperson, Tata Motors said: “Under the prevailing market scenario the company has to take appropriate action time to time to match the production with demand and avoid unnecessary build up of inventories in the company or with the dealers. This block closure from August 29, to August 31 is in line with the above stated objective”. “The market conditions are not favourable we have to take block closer rather than creating inventory. The production of vehicles has reduced and there is no use building inventory,” said a senior functionary of the Union.
Over 500 ancillary units in Adityapur are facing the prospect of closure or sale of their business as a direct fall-out of the recession in the auto industry which has severely affected even majors such as Tata Motors. Vendors and auto ancillary units in the region, totaling almost 2000, are facing challenge yet, with orders to a mere trickle, even as principals such as Tata Motors have drastically cut production to tide over tough times.