As the automobile industry reels under a slowdown that has seen sales slump to record lows, Sundaram-Clayton has become the fourth auto manufacturer in the last three days to announce plant shutdown.
Sundaram-Clayton on Friday announced the closure of its Padi factory for two days.
“Sundaram-Clayton Limited (SCL), a TVS group company, and a leading Indian manufacturer and supplier of aluminium die cast products to domestic and global automotive OEMS, has declared August 16 and 17, 2019 as non-working days for its Padi factory," the company said in a statement.
This is due to business slowdown across sectors,” it added.
The TVS group company’s decision comes close on the heels of similar announcements from Bosch, Hero MotoCorp and Tata Motors.
Earlier on Friday, Bosch, which makes a wide range of auto products including braking systems and batteries, announced the restructuring of its business due to the slowdown in the industry, which has been exacerbated in recent months by a liquidity crunch in the country’s non-banking finance companies (NBFCs).
The country's largest two-wheeler maker Hero MotoCorp on Friday said its manufacturing plants have been shut for four days till August 18 as part of annual routine and also to adjust production in line with current market demand. In a regulatory filing, Hero MotoCorp said its manufacturing facilities will be closed from August 15 to 18, 2019.
Tata Motors had on August 14 announced the closure of its Jamshedpur factory for four days, beginning August 16. "The Tata Motors will remain closed for four days from August 16. Officially it will be two days block closure but technically it will be closed for four days," people aware of the matter in Tata Motors told IANS.
In a bid to address the slowdown, Prime Minister Narendra Modi on Thursday met finance minister Nirmala Sitharaman and took a comprehensive review of the current state of the economy.
First Published: IST