Mahindra & Mahindra (M&M), the Indian SUV manufacturer has announced that it will be observing ‘no production days’ at its manufacturing facilities in order to balance the decline in demand for sports utility vehicles (SUV) in India.
The slowdown of demand for SUVs has been attributed to the rise in excise duty as well as the monthly hikes in diesel price.
The Indian carmaker stated that it would be observing ‘no production days’ for a period of 1-8 days in order to align its sales requirements with production. Mahindra Vehicle Manufacturers, which is a subsidiary of M&M will also halt production during this period.
The deregulation of diesel price resulting in the frequent hikes in diesel price has been touted as a major contributor to lowering the consumer buyer sentiments. Moreover, the increase in excise duty on SUVs from 27 percent to 30 percent has also compelled the automakers to share the burden with customers.
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