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Indian auto giant Tata Motors and America's General Motors' local unit will halt production at their factories this week. The move by the carmakers have been made to stop stocks from piling up due to the slump in demand in the market.
Sales have been dropping due to high fuel prices and high interest rates in one of the largest growing car markets in the world. Car sales grew just 2.2% in the year through March to 2.02 million vehicles, compared with a 30% jump in the previous year.
General Motors India president and managing director Lowell Paddock said: "We are aligning production on a daily basis as per demand and based on that we decide on certain no-production days to avoid unnecessary inventory buildup."
He added that the company will stop production at its factories for one day this week. A spokesman for Tata Motors said that the automobile manufacturer will halt production of trucks at it Jamshedpur facility for three days from June 28 - 30.
