Auto components manufacturer, Bosch Ltd on June 27 said that will temporarily shut down its manufacturing plants located in Jaipur and Bangalore. The company said that the manufacturing plants will be shut down so as to prevent inventory pile up due to slowdown in the market.
Bosch in a filing to BSE said, “It is proposed to suspend the manufacturing operations at the company’s Jaipur plant from June 28, 2012 to June 30, 2012 and at the company’s Bangalore plant from June 29, 2012 to June 30, 2012″. The company explained that the step has been taken so as to adjust production to meet the demands of the products and to avoid unnecessary buildup of inventory.
The company supplies various parts which include the critical engine components to many of the automobile manufacturers in India. As the vehicle sales in India is going down due to high interest rates and petrol prices, many of the automobile manufacturers in India are shutting down their plants on a temporary basis to reduce the inventories.
The production at Tata Motors Plant in Jamshedpur plant will be halted for three days from June 29 due to the slowdown. The production of commercial vehicles was stopped at Pune plant for three days earlier this month.