Top Indian automakers plan production cuts amid industry crisis (updated)

ZF Commercial Vehicle Control Systems India

09/08/2019 08:50

(Adds Tata Motors and M&M production cuts, share prices)
    BENGALURU, Aug 9 (Reuters) - Indian automakers Tata Motors
Ltd  TAMO.NS  and Mahindra and Mahindra Ltd (M&M)  MAHM.NS  said
on Friday they would cut production at some plants in response
to slowing demand that industry executives say has driven the
sector into one of its worst downturns.
    Tata Motors, which had previously flagged a "challenging
external environment", said it closed some blocks at its Pune
plant in the western state of Maharashtra.
    The company, India's top automaker by revenue, had last
month posted a bigger-than-expected quarterly loss due to weak
conditions at home and problems at its British luxury car unit.
 urn:newsml:reuters.com:*:nL4N24Q35F
    M&M said on Friday its automotive segment, which makes
passenger and commercial vehicles and spare parts, would cut
production for 8-14 days at various plants during the second
quarter.  urn:newsml:reuters.com:*:nFWN2541QB
    Shares of Tata Motors and M&M fell between 1.8% and 2.4%
before cutting losses in a broader Mumbai market  .NSEI  that
was 1.3% higher as of 0720 GMT.
    The slowdown in the sector has triggered massive job cuts,
with initial estimates suggesting that automakers, parts
manufacturers and dealers have laid off about 350,000 workers
since April, a senior industry source told Reuters earlier this
week.  urn:newsml:reuters.com:*:nL4N2524GX
    The crisis has also hit smaller auto parts makers like Jamna
Auto Industries Ltd  JMNA.NS . The company, whose customers
include Tata Motors, General Motors Co  GM.N  and Toyota Motor
Corp  7203.T , said on Thursday it might shut all its nine
plants in August due to weak demand.
    "In view of the weak customer schedule and high inventory,
the company has made changes in production schedule at all its
plants. The plants may not run or partially run on all working
days in August," Jamna Auto said.
    Jamna Auto's shares fell as much as 8.5% on Friday. 
    Auto components manufacturers Bosch Ltd  BOSH.NS  and Wabco
India Ltd  WABC.NS  have already trimmed production amid the
demand slump.

 (Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu
Sahu)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))