Bloomberg News

Tata Motors, Mahindra Decline as Riots, Curfew Hurt Production

October 04, 2011

Oct. 4 (Bloomberg) -- Tata Motors Ltd. and Mahindra & Mahindra Ltd. declined in Mumbai trading after riots and a curfew imposed by the police in the northern Indian state of Uttarakhand hurt production at their factories in the area.

Tata Motors, India’s biggest truckmaker, fell 4.5 percent to 146.70 rupees at the 3:30 p.m. close in Mumbai trading, the lowest since Sept. 14. The stock was the third-worst performer on the benchmark BSE India Sensitive Index, which lost 1.8 percent. Mahindra, the nation’s biggest tractor manufacturer, dropped 4.2 percent, the most since Aug. 4, to 776.80 rupees.

Production at Tata’s Pantnagar factory that has a capacity to make 300,000 vehicles a year was partially affected after the curfew, Debasis Ray, a spokesman for the Mumbai-based owner of Jaguar and Land Rover, said by phone. Mahindra halted production of tractors in Rudrapur starting yesterday, Pawan Goenka, president of the company’s automotive and farm equipment unit, said in a telephone interview.

The local administration will decide when to lift the curfew in Rudrapur, Rajeev Gupta, the top bureaucrat in charge of security in Uttarakhand said in a telephone interview.

--Editors: Suresh Seshadri, Sam Nagarajan

To contact the reporter on this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net

To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net


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