Bosch has suspended production at its Bengaluru and Bidadi plants (both in Karnataka) for two days in order to adjust inventory levels. "With a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend all manufacturing operations at the company's Bengaluru and Bidadi plants on 30 December and 31 December," the automotive component manufacturer said in a regulatory filing. In a similar development, the company earlier said its Jaipur plant, in Rajasthan, will remain closed for eight days from 26 December. The company makes diesel and gasoline (petrol) fuel injection systems, among other products, at its plants.
Significance: The announcement by Bosch contrasts with a recovering vehicle sales market in India. However, it is important to highlight that as well as supplying components to automakers, Bosch is also a prominent vendor to the aftermarket segment. Bosch's move to implement a temporary output suspension comes at a time when several automakers have announced price revisions for their vehicles in January 2016.
