Slowing economy forces Tata Motors, M&M to shut plants

Indian auto makers Tata Motors Ltd and Mahindra & Mahindra Ltd are closing plants for up to 6 days in December as demand for vehicles is hit by tight financing in a slowing economy.

The country's top vehicle maker Tata Motors plans to shut its heavy vehicle plant in east India for six days, a spokesman said. It said earlier this week it would to shut a commercial vehicle plant in west India for three days.

Tata Motors', India's top bus and truck maker, November vehicle sales dropped 30 percent to 32,696 units. The country's biggest utility vehicle and tractor maker Mahindra said most of its automotive plants will be shut for up to 6 days in December due to easing demand.

"Taking into account the slowdown in demand for the company's products it has been decided to align the company's production plan with the expected demand for the month of December," Mahindra said in a statement.

Mahindra, which also makes the Logan sedan in a venture with Renault, earlier this week said vehicle sales in November fell 39 percent to 11,273 units. Carmakers in India have cut prices and are offering freebies to woo back buyers as sales slide after nearly five years of rapid growth.

Source: Agencies