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Home Articles Bosch to go slow on production to avoid excess inventory build up

Bosch to go slow on production to avoid excess inventory build up

Bosch to go slow on production to avoid excess inventory build up

German automotive tier supplier with a presence in
India dating back to over five decades, has slowed down its production to avoid
excessive build up of inventory. This, claim industry sources, comes in the form
of the supplier suspending operations at two of its manufacturing facilities in
India for a period ranging from two to six days. Sources claim further that the
company’s Jaipur plant will suspend production October 12 and October 19, and
again from October 28 to November 2. Similarly, the company’s Bangalore plant
will be shut on October 15 and October 31. The company is known to have
undertaken a similar exercise last month, as demand for auto components in India
remains sluggish on the back of declining auto sales. One of the largest auto
parts manufacturers in the world, the company exports a large number of its
products overseas. The value fluctuation between the Indian Rupper and US Dollar
does not seem to have helped the company despite its ability to export its
products. Perhaps, the slow European auto market, the culprit. The slump in auto
sales coupled with the rising input costs and excise duties is forcing
manufacturers to cut production, and a similar step is being carried out by
component manufacturers. Compared to tier suppliers like Bosch, it is however
the smaller automotive suppliers, often referred to as SMEs, that have taken a
bad beating. Are in a worst shape ever; especially after having pumped in fresh
investment to ride the high tide over the last few years, hoping that the global
slow down will not affect India.

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