Car companies to shut their plants for maintenance

Monday, Dec 28, 2015

As the year comes to a close, it's time for car makers to shut their factories for maintenance, which will also help the companies correct their inventory position before the New Year sets in.

Maruti Suzuki, the country's largest car maker, will keep its plants shut between December 27 and January 3, while the Renault-Nissan alliance will not operate its factory in Chennai from December 28 to January 3.

People in the know of Maruti's production plans said the company's out put has been cut to 1.12 lakh units in December from the monthly count of 1.24 lakh because of the shutdown.

Experts call these shutdowns strategic. This exercise helps companies reduce current year stocks spilling into to the New Year -such vehicles are usually sold on a discount -as well as offers yearend holidays to workers.

The Indian units of Ford Motor and BMW had advanced their maintenance shutdowns before Christmas, along with the repair and maintenance work they had undertaken following the Chennai floods.

Hyundai Motor India, which usually under takes a yearend shutdown, decided against it in order to meet demand for its vehicles in India and overseas.

Traditionally, car makers resort to maintenance shutdown twice a year - one in the middle of the year and the other at the end, but over the past few years, they have been timing the shutdowns during Diwali.

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