Country's largest automobile maker Tata Motors on Friday said its passenger car plant at Pune is functioning normally amid speculations that the company may go for a similar shut down, after it closed its heavy commercial vehicles unit at Jamshedpur for three days.
"Tata Motors passenger car plant at Pune is working in its normal manner, We are keeping a close watch on the commercial vehicle market scenario, and our objective will be that production should match demand such that there is no build-up of inventory either in the company or with our dealers," a company spokesperson said while reacting to reports that it might shut down its Pune plant.
The company manufactures passenger cars and commercial vehicles at its Pune facility.
On Wednesday, Tata Motors had announced shutting down its Jamshedpur unit, the mother plant for its heavy commercial vehicles, for three days due to slump in demand.
The Jamshedpur plant is the hub for manufacturing tippers, tractor trailers and multi-axle vehicles.
"Tata Motors is taking a block closure at Jamshedpur from November 6 to November 8, 2008, to match production with demand of vehicles produced at the Jamshedpur plant to avoid build-up of inventory either in the company or with our dealers," the company spokesperson had said.
The company also said that about 95 per cent of commercial vehicles are purchased through financing. As has been seen in the month of October across the industry, unavailability of finance, coupled with high interest rates, is forcing customers to postpone purchases.