Tata Motors and Volkswagen will slow production in Pune this month because of a fall in demand.
Tata has confirmed a three-day closure at its plant while VW workers’ union claims that the company is planning a month-long block closure soon.
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Debasis Ray, head of corporate communications at Tata said that during the closure, employees will be paid half a day’s salary per day.
VW said it cut the working week at its Chakan plant, from six to five days. A spokesman said that for the past 15 days production had fallen from 430 vehicles a day to 400 a week as demand for its vehicles had dropped It does not expect demand to pick up before the end of the year.
The Chakan plant has a production capacity of 110,000 vehicles a year and makes the Polo and the Skoda Fabia.
