In what could be termed as a clear signal of the slowdown in the automobile sector, Tata Motors will shut its Jamshedpur plant for three days from November 6 to 8. The commercial heavy vehicles major has said in a notice to its 4,500 employees that the unit would remain closed to maintain a demand-supply equilibrium.

The company has seen a slump in demand in recent times as it revised its production output from 225 vehicles per day to 160 vehicles per day. For financial year FY09, the company has reviewed its target of producing 1,03,000 vehicles to 90,000 vehicles, said a source in Tata Motors. Officers would undergo leave without-pay during the period that the plant will remain closed.

"Tata Motor's block closure is expected to match production with demand of vehicles produced at the Jamshedpur plant to avoid build-up of inventory either in the company or with our dealers," a company spokesperson said.

In a notice to employees, Tata Motors said that bargainable employees (plant workers, non-officers) would get 50 per cent of their salary during the period of the shutdown while non-bargainable employees (officer level) will not be paid for the 3 days.

He said that lack of financing for commercial vehicles has affected sales as most of the vehicles are fincnaced by institutions. It has four units -- Jamshedpur, Pune, Lucknow and Uttaranchal.

Tata Motors manufactures only commercial heavy vehicles (tractor-trailers, MAVs and tippers) in its Jamshedpur unit. The company's shares fell 4.9 per cent to close at Rs 313.85 at the Bombay Stock Exchange on Wednesday.

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