After Tata Motors, Hero MotoCorp, Maruti Suzuki, Mahindra & Mahindra, TVS has decided to shut production in its factory in Padi, Chennai.
"Sundaram-Clayton Limited (SCL), a TVS Group Company, and a leading Indian manufacturer and supplier of aluminium die-cast products to domestic and global automotive OEMS has declared August 16 and 17, 2019 as non-working days for its Padi factory. This is due to a business slowdown across sectors," TVS said in a statement.
The news comes amid the auto sector's worst crisis in India. Earlier in the day, India's largest two-wheeler maker Hero MotoCorp announced that its manufacturing plants will remain shut for four days until August 18.
Passenger vehicles production in India was down 13.18 per cent in April-July this fiscal with top manufacturers such as Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Ford, Toyota and Honda reducing output massively.
Sales figure in the auto industry has taken a nosedive amid slowing demands and sluggish outlook.
Hyundai Motor India Ltd (HMIL) and Volkswagen India were the only two main manufacturers which saw production grow marginally during the period, according to the latest data by the Society of Indian Automobile Manufacturers (SIAM).
Total Passenger vehicles (PV) production in the April-July period stood at 12,13,281 units as against 13,97,404 units in the same period last fiscal, down 13.18 per cent, SIAM said.
Market leader Maruti Suzuki India's (MSI) production during the period stood at 5,32,979 units, down 18.06 per cent from the comparable period last fiscal.
Mahindra & Mahindra (M&M) also curtailed its production by 10.65 per cent at 80,679 units, while that of Ford India stood at 71,348 units, down 25.11 per cent from the year-ago period.
Tata Motors' production was also down 20.37 per cent at 59,667 units. Similarly, Honda Cars India's output during the period under review stood at 47,043 units, down 18.86 per cent from the corresponding period last fiscal.
Toyota Kirloskar Motor (TKM) reduced its production during the period by 20.98 per cent to 45,491 units.
On the other hand, HMIL, the second-largest player in the PV segment in the country saw its production grow marginally by 1.77 per cent at 2,39,671 units in the April-July period.
Likewise, Volkswagen India's production increased by 1.05 per cent to 36,929 units. In the two-wheeler segment also total production was down 9.96 per cent at 78,45,675 units as against 87,13,476 units in the same period last fiscal, as per SIAM data.
Market leader Hero MotoCorp's production was at 24,66,802 units, down 12.03 per cent from the year-ago period.
Similarly, Honda Motorcycle and Scooter India (HMSI) also reduced production by 18.5 per cent to 19,44,900 units while that of TVS Motor Co was down 8.07 per cent at 11,54,670 units.
Royal Enfield also cut its output by 22.35 per cent to 2,40,190 units.
In contrast, Bajaj Auto increased its production by 4.47 per cent during the period at 13,89,396 units. Suzuki Motorcycle India also hiked its production by 24.51 per cent to 2,83,291 units during the period.
The current slowdown in the auto industry has forced manufacturers to reduce production which has resulted in the retrenchment of 15,000 casual and temporary workers so far.
Dealers body FADA has also stated that nearly 2 lakh jobs were cut in the last three months while components industry body ACMA has cautioned that nearly 10 lakh jobs were on the line due to the market slump.
However, benchmark indices Sensex and Nifty pared early losses to settle marginally higher on Friday, helped by fag-end buying mainly in banking and auto stocks tracking an uptrend in most Asian markets.