Tata Motors confirms shutting down Sanand facility for 3-6 weeks

Clients blame inventory pile-up.

According to Maybank Kim Eng, Tata Motors (TTMT) confirmed that it has shut down the Sanand facility manufacturing the Nano for 3-6 weeks. 

Here's more from Maybank Kim Eng:

The maintenance shutdown is an annual exercise the company undertakes for upgrading the facility and increasing the flexibility to introduce new variants.

However, TTMT’s dealers and suppliers confirmed that the shutdown was more due to inventory pile-up and lack of new demand.

Domestic car sales form a small part of TTMT’s overall revenue and earnings and this shutdown is unlikely to have a major impact. We maintain BUY on TTMT with TP of INR510 based on PER of 10x FY15F.