Hero MotoCorp, the country’s largest two-wheeler maker, today said its manufacturing plants would remain shut for four days till 18 August as part of an annual routine and also to adjust production in line with the current market demand.
In a regulatory filing, Hero MotoCorp said its manufacturing facilities will be closed from 15 to 18 August 2019.
“While this is part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, it also partly reflects the prevailing market demand scenario,” the company added.
Hero MotoCorp further said production planning is a matter of advance monitoring of the market dynamics and prudent demand forecasting.
“This helps us to plan our production well in advance, thereby enabling us to stay flexible both in terms of volumes and production schedules,” the company said.
Hero MotoCorp has been reducing production due to declining sales. In the April-July period this year, the two-wheeler market leader’s production was at 24,66,802 units, down 12.03 per cent from the year-ago period.
Hero MotoCorp had reported 38.28 per cent year-on-year growth in its net profit at Rs1,257 crore for the first quarter ended 30 June 2019.
However, due to the ongoing slowdown and widening losses in the auto sector as a whole, several auto and allied businesses are partially shutting down operations.
Jamna Auto Industries Ltd, a maker of springs used in vehicle suspensions, said last week that it might shut all its plants in August due to weak demand. Listed auto manufacturer Bosch Ltd on Tuesday said it had begun restructuring parts of its business in light of a deepening slowdown in the country's automotive industry. The German car parts supplier posted a drop in June-quarter profit. Bosch, the latest firm to flag weak conditions in the Indian auto market, said its automotive sales dived 17.5 per cent in the June quarter.