Tata Motors is moving up its annual maintenance shutdown to reduce its growing stockpile of unsold cars, which now equals two months of sales. Normally, automakers shut down plants in December to clear out old stock and prepare for new models, but Tata Motors is taking this step early due to slow sales of petrol, CNG, and electric vehicles.
Tata Motors will close its passenger vehicle plants in Pune and Gujarat for 3-5 days this month or in November, adding to the Diwali holidays, for a total of 7-10 days. The goal is to cut production by around 15,000 cars by the end of December.
Sales for Tata Motors dropped 8% year-over-year in September, with electric vehicle sales falling by 23%. Despite new models and discounts of up to ₹3 lakh on electric vehicles like the Nexon and Punch, demand remains low. The company’s overall sales hit their lowest point in 2.5 years, as the auto industry faces a 5% decline in retail sales due to low consumer demand and seasonal factors.
Tata Motors is the first carmaker to reduce production this year, while others are expected to make decisions after the festive season.
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