GM India, Tata Motors to Suspend Production This Week

By NIKHIL GULATI And ANIRBAN CHOWDHURY Updated June 27, 2012, 9:49 a.m. ET

MUMBAI – Tata Motors Ltd. and the local unit of General Motors Co. will suspend vehicle production at their factories this week to avoid piling up stocks amid tepid demand in Asia's third-largest automotive market, executives at the companies said Wednesday.

"We are aligning production on a daily basis as per demand and based on that we decide on certain no-production days to avoid unnecessary inventory buildup," Lowell Paddock, president and managing director of General Motors India Pvt. Ltd., told reporters.

The company will halt production at both its factories for one day this week, he said. "We had a no-production day last week as well."

Tata Motors, India's biggest auto maker by revenue, will stop producing medium and heavy trucks at its east India factory in Jamshedpur from June 28 to June 30, spokesman Debasis Ray said separately.

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