The auto sector meltdown continues to take its toll on major companies in the city. Apart from Tata Motors, several other leading companies are also suspending production to meet the challenges.
Sources informed that with the slump in the auto sector, Tata Motors decided for the longest block closure this time. “The market conditions are not favourable. Thus, we have to take block closer rather than creating inventory,” said an official.
Over five hundred ancillary units in the industrial belt of Adityapur are facing the prospect of closure or sale of their business as a direct fall-out of the recession in the auto industry which has severely affected even majors such as Tata Motors
Vendors and auto ancillary units in the region, totaling almost 2,000, are facing perhaps their toughest challenge yet, with orders coming down to a mere trickle, even as principals such as Tata Motors have drastically cut production to tide over tough times.
