Ahmedabad: OEMs across India will shorten production cycles to manage inventory in response to weak sales after demonetization, the Indian Automobile Manufacturers’ Association said.
While Diwali sales in Dusshera were good, the demonetization drive in the Centre affected car sales in November and December months. In 2017, he said, OEMs will need to manage their production cycles after new products are launched. This is because sales across categories have declined by 5% and market sentiment has not changed due to the liquidity crisis.
He told the Economic Times, “Some automobile companies will reduce their production shifts from three to two.”
Auto dealers hinted at possible layoffs, but SIAM He said the situation could improve in the coming months. He said, “While layoffs are not imminent, we expect more disruptions to maintenance at auto plants.”
Production of starters, generators, engines, cages and related equipment accessories for mini vehicles, cars, agricultural vehicles and diesel vehicles; and import and export business of self-operated products
Auto parts wholesale; Auto parts retail; Machinery and equipment sales; Sales of electronic components and electromechanical components; Sales of electronic products
Auto parts and accessories manufacturing; Production and sales of engine parts, automotive supplies and automotive lubricants,Car modification; Automotive technology development
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