Production of heavy commercial vehicles — trucks, trailers, tippers and other multi-axle vehicles — came to a grinding halt at the Jamshedpur plant of Tata Motors on Thursday as part of a two-day block closure.

The fall in demand for heavy commercial vehicles is said to be the reason behind the forced shutdown, though the notice put up at the Jamshedpur plant did not specify reasons.

The notice stated that workers affected by block closure would avail their privilege and casual leave for 50 per cent of the day and for the remaining half will be paid their normal wages/salary by the company.

Workers’ union sources revealed that the closure would affect around 6,000 employees at the Jamshedpur plant.

“Fifty per cent of salary during the period of block closure will be adjusted against leave. The company will pay the rest. The management took the decision (block closure) keeping in mind the current scenario in the automobile sector. The shutdown will help optimise establishment and other costs,” said R.K. Singh, general secretary of Tata Motors Workers’ Union, the existing recognised union of the company.

Harshvardhan, member of Telco Workers’ Union, a rival union, added that production at Tata Motors had come down to around 100 vehicles per day for the last few months. Before that, the company met its monthly target of producing around 10,000 heavy vehicles.

He said the company underwent three days of block closure in February. “The frequency of such block closures was more last year between July and October due to the slump in automobile sector, which is still continuing,” the union leader said.

As news of the block closure spread, the mood turned dismal at Adityapur industrial area, a hub of ancillary units of Tata Motors in nearby Seraikela-Kharsawan district.

Around 700 firms that manufacture components directly or indirectly for Tata Motors will be affected by the block closure.

Adityapur’s Auto Profiles Ltd, which supplies sheet metal to Tata Motors on a day-to-day basis, will now also down shutters for two days.

“We have no space to stock the manufactured products. Following the block closure at Tata Motors, we have therefore taken a decision to shut the unit for two days,” said Bikash Mukherjee, the owner and managing director of Auto Profiles Ltd.A senior functionary of Adityapur Small Industries Association (ASIA) Santosh Khetan said most ancillary units would either be shut or not operate at full capacity during the period of block closure for two days. “Suspension of work for two days at Tata Motors will definitely mean financial loss for ancillary units at Adityapur,” he said.

Khetan said the situation might improve after the Bharat Stage VI-compliant vehicles hit the market. “The sale of vehicles (Bharat Stage - IV) have been largely affected due to the Supreme Court diktat that only Bharat Stage VI-compliant vehicles would be sold in India from April this year. We are keeping fingers crossed. The automobile sector is expected to take a turn from April,” he said.