Mahindra & Mahindra, on Friday, said it would undertake tractor production cut for two days a week at its three plants — Rudrapur, Nagpur and Jaipur — under a stock rationalisation programme amid slowing demand.
As part of the ongoing rationalisation of finished stocks, the company would be observing no production days up to two days a week for the remaining period of March, the company said in a filing to the BSE.
“The management does not envisage any material adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements,” it said.
The move by the company comes at a time when its tractor sales have been slowing down. M&M's domestic tractor sales in February were down by 20.91 per cent at 14,341 units, as against 18,134 units in the same month last year. Exports, however, grew by 7 per cent at 975 units during the month.
In the April-February this fiscal, domestic sales stood at 2.06 lakh units, up 12 per cent from the year-ago period. Total cumulative sales, including exports, for the period grew 13 per cent at 2.18 lakh units.
Wins arbitration
Meanwhile, the company said the International Arbitration Panel unanimously rejected the contention of Global Vehicles (GV), the firm that was to sell its vehicle sin the U.S., that M&M had violated the distribution agreement.
