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EDITORIAL Much-needed resuscitation

T

ata Motors has halted production at its Jamshedpur facility since November 26 citing poor demand. Company officials indicate that its heavy trucks are piling up at dealers outlets and the shutdown is aimed at managing the slowdown in sales in a ‘proactive’ manner.

Elsewhere, industry observers are pleading with the government to discontinue plying of old vehicles and restriction on sales of environmentally non-compliant trucks. Insisting on this action may provide some relief to Tata Motors’ woes. Comments can be sent to am.editorial@network18publishing.com

A Tata Motors spokesperson said the block closure had been planned keeping in mind the weak demand for commercial vehicles. The company had produced around 5,000 units of vehicles last month against general production level of double the figure. This is the third block closure undertaken by the company this year including the three-day closure observed early this month from November 12-14. Though long anticipated (and hence less painful), the current slowdown is likely to be better managed by various stakeholders. It is likely that the manufacturers will have to take a hit on profitability by offering discounts to dealers, and financiers to the end customers. In order to spruce up sales, it is also planning launches across various segments to generate excitement among miners and transporters.

QUOTES Dieter Zetsche, Daimler CEO

Christian Klingler, Sales Chief, Volkswagen AG

This year’s western European car market may well fall to the level of 1993.

In the south, the crisis is stronger and the people are suffering more. We believe that the situation in Europe over the next (few) years will stay on quite a low market level.

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Auto Monitor - 3 December 2012  

'AUTO MONITOR’, India’s leading weekly automotive news magazine, focusses on offering a broad platform to the automotive industry. It strive...

Auto Monitor - 3 December 2012  

'AUTO MONITOR’, India’s leading weekly automotive news magazine, focusses on offering a broad platform to the automotive industry. It strive...

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