Tata Motors is learnt to have cut production of the medium and heavy commercial vehicles (M&HCV). Although the exact quantum of the reduction could not be ascertained, industry sources said it could be as high as 50%.


When contacted, Tata Motors’ spokesperson said the company has been ‘calibrating’ the production of M&HCV in the wake of sluggish demand for the product. This exercise is to ensure that there is no inventory with the company as well as its dealers. It is also understood that a slow down in the demand for commercial vehicles has prompted the company to disengage temporary employees (700 employees) from service.

The automobile industry has been witnessing a steady decline in the M&HCV sales. During the month of September too, Medium & Heavy Commercial Vehicles registered de-growth at 1.57 percent. The cut in production would definitely hit the revenues & profitability of the company going forward.  

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