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Tata Motors slashes CV output to manage stocks

Auto News - Published on Mon, 27 May 2019

Image Source: DFL Car Dealer
The slowdown in the commercial vehicles (CVs) industry has prompted truck and bus major Tata Motors to cut production by 10,000-15,000 units in commercial vehicles in April 2019. The move comes even as the company readies for strong stock management in the run-up to migration to BS6 emission norms in April 2020. Tata Motors president (commercial vehicles business unit) Mr Girish Wagh that “Typically, the first quarter of a fiscal is always a lower production month than the previous quarter and we have already taken a production cut in April 2019.”

The company, which normally produces 40,000-45,000 units a month, brought it down to 30,000 units to account for the sluggish demand. Mr Wagh said that “Some of it was due to the slowdown and some of it was natural stock management,” he said. However, this year, the stock management, he said, will be tighter because of the migration to BS6. He added that “We want to run out of BS4 stock not only at factory gates but also in dealerships and on vendor floors before April 2020. From that perspective, we will keep tweaking the production as required.”

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Posted By : Rabi Wangkhem on Mon, 27 May 2019
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