Manufacturers looking at made-to-order production

The automobile industry has been showing positive growth over the past couple of months, but it is still not manufacturers can call ideal in terms of utilising their production capacity to the fullest.

What happens then is, manufacturers churning out an X number of products daily, and due to slow sales, the inventory piling up resulting in to huge losses. To counter this, manufacturers are now looking at the made-to-order production module.

Commercial vehicle giant, Ashok Leyland has already adopted this production module for it’s latest Boss and Captain truck models which are manufactured at Pantnagar. Maruti Suzuki has also adopted this policy long back for the Gypsy SUV which is manufactured at Gurgaon. Honda also follows this format with the new CR-V which is rather slow moving out of their showrooms

Manufacturers claim that in this way, they can manage their inventory and help reduce long term losses. Also, it doesn’t make sense to produce products in large numbers which lack demand.

We think this is a sensible choice, but will surely increase the delivery time after you order / book your vehicle.

Source – ET Auto