Mitsubishi Motors is thinking of cutting down the production at its factory in Japan by up to 1,00,000 units from November due to the slow sales.
From the past few months, the car sales has dipped more than expected in all major markets due to the weak consumer confidence and the economic pressure that is casting its shadow on all the industrial sectors.
The car major will lower down the manufacturing of cars and SUVs, and is anticipated to amend its planned worldwide from the current 1.39 million units in the business year ending in March 2009.
Even Toyota Motors, one of the healthiest car manufacturers as reflected by its AAA debt rating, is also likely to post its first quarterly sales decline in seven years.
Production cutting is a major issue and this means the number of models produced will be limited. Yes Indian car market too would be affected with this decision.
It has to or else the piled stocks of cars will keep on increasing. Economic recession has badly influenced the car market and has further slowed down the sales figure. With this I think that slowing down car production is a wise decision.
Indian market will surely be in demand for these makes. Toyota and Mitsubishi, which does play an important role in Indian Auto Market will surely see a dip of these makes on world market, as they are deciding on cutting short their production. But lets hope that this decision will never harm the the spare parts section, which is costly and hard to get.
Ya, this is something very obvious. All car manufacturers are cutting down their production. I have heard that Honda has stopped the second shift in its facility that was introduced earlier.
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No Nany, you are wrong. It’s Ford India not Honda that has stopped the second shift in car production. Honda has also started working against the impact of economic recession and has deferred its planned investment. The company was earlier planning an investment of Rs 1000 crore on its second plant in India, at Tapukara in Rajasthan. It has already invested Rs 600 crore and the remaining investment of Rs 400 crore is delayed due to the present day situation of the market.