General Motors will continue to limit production till festive season

Earlier this week we had reported that how Tata Motors, one of the country’s biggest carmakers, had to cut down production following sluggish economic growth in the auto industry. It seems like the situation isn’t going to improve anytime soon for the carmakers including General Motors, who are currently facing a tough time to clear off their existing stock. 

In order to avoid excess pile up of cars, GM will continue to limit its production run and take a one-day halt every week. The production limit will be maintained till the festival season.  

Lowell Paddock, president and managing director, General Motors India, said "production cut is likely to continue until the festival season." 

The carmaker presently is also lining up production at its facilities in Maharashtra and Gujarat as per daily demand in order to avoid excess pile up of stock. The Talegaon plant in Maharashtra churns out 1.4 lakh units a year, while the Halol facility in Gujarat produces 85,000 units, which has now being upped to 1.10 lakh units. 

R Balendran, vice president for corporate strategy, commented, "Unlike other car makers, we don't shut down the plant and instead a no-production day. This will help us avoid an inventory build-up. We don't expect the market to improve before the festival season and even during that period, there is not going to be a very significant improvement as such.”