PTI last week reported that TATA Motors said that it has cut production in both the passenger and commercial vehicle segments in order to align its output with market demand.

Mr PM Telang TATA Motors MD India Operations told on the sidelines of a summit organised by the Society of Indian Automobile Manufacturers that “Yes, we have adjusted production of both passenger vehicles and commercial vehicles in order to align with the market demand.”

He said the production cuts would vary for different models, but did not provide specific details.

Mr Telang said that “As far as the commercial vehicles are concerned, most of the cut is in the higher segment, as the light and small commercial vehicle segment is doing well.”

Commenting on the decline in consumer demand for passenger vehicles, he said “Due to high petrol prices and inflation rate, there has been a slowdown in demand.”

According to SIAM estimates TATA Motors' production of passenger vehicles declined by 21.63% YoY to 28,344 units in July, 2011.

(Sourced from profit.ndtv.com)