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INDIA: Monsoon rains affect vehicle output

By just-auto.com editorial team | 6 August 2004

Unprecedented heavy rains in the states of Maharashtra and Gujarat have led to disruption of economic activity affecting the motor industry. Torrential rains in the region have caused the rivers to overflow leading to release of dam water and flooding in the area has disturbed road and train transport for the last week.

General Motor India's plant in Halol has seen production reduced by 50% as the plant faces raw material shortages and a build up of finished car inventory. This comes at a bad time for the company, just when GM was on overtime to deliver its recently launched MUV Chevrolet Tavera to the 3,000 customers waiting for up to three months. This will lengthen the period. But, GM officials say that production will be restored soon.

At the Mahindra & Mahindra plant in Igatpuri, production in the last 2-3 days was reduced by 10 to 15%. Since the company operates on tight inventory, there is a slow down at key suppliers located in the flooded district of Palghat.

Deepesh Rathore / Tilak Swarup