Mahindra states that the reason for the halt in production is due to the low sales and demand in the country; the reason being the massive slowdown in the industry, affecting most auto manufacturers. Mahindra will align its production with the sales requirement in the country, during this industry slowdown.
According to ET Auto, Mahindra stated in a regulatory filing "The company in the auto sector, and Mahindra Vehicle Manufacturers Limited (MVML), a wholly owned subsidiary of the company, as part of aligning its production with sales requirements, would be observing 'No Production Days' ranging between 8-14 days in various plants of the company during the second quarter of the financial year 2019-2020."
However, Mahindra did go on to state that the halt in production will not affect the availability of the vehicles in the market, as they already have sufficient inventory to meet the current demands.
Mahindra is currently witnessing a slope in sales of 11 percent for the month of July 2019. The company recorded 16,024 units of sales in the previous month, compared to 17,972 units during the same month last year.
The company however has recently announced that they are working towards introducing electric vehicles in the Indian market. Mahindra has confirmed the launch of three new EVs in India by 2021. As part of their EV lineup, Mahindra will introduce the electric versions of the KUV100 NXT and the XUV300.
They have also tied up with Ford India and will be offering an electric version of the Aspire compact-sedan rebadged as Mahindra here are all the details regarding the launch of the three new upcoming EVs from the Indian carmaker.
Thoughts On The Mahindra Production Halt In India
The automotive industry in the Indian market is currently facing its biggest slowdown yet. All major manufacturers in India are witnessing a decline in sales, with no respite anytime soon. Mahindra has decided to slow production to a minimum until the market gets back on track in the country.
Mahindra & Mahindra has announced that they will be temporarily suspending production operations in India. According to the company, various Mahindra plants will stop production for a period of 8 to 14 days between July and September this year.