Tata Motors in Pune announced a three day "block closure" of its Pimpri-Chinchwad plant effective from Monday.
The shutdown will be in force in the commercial vehicles section while work in the passenger vehicle segment will continue normally, company sources said.
It is the third time in the last two months that the company has effected a partial and periodic closure of its plant following a slump in demand.
The first six-day shutdown was in the last week of November.
Aimed at matching production with demand the measure has been discussed with the affected workforce of around 6,000 permanent employees, company officials said.
Passenger vehicle segment which has remained unaffected by the company's decision, is engaged into the production of Tata Indica.
A union spokesman told PTI that as per the agreement with the management, interests of workers were adequately protected during periods of partial closure of the plant.