Pune: Tata Motors'' has cut production at its Pune plant by 20 per cent, while the launch of the new Indica, scheduled for launch in September, has also been deferred to adjust for a drop in sales.

Since the last couple of days, production of the Indica, Marina and Indigo models at the Pimpri facility has been curtailed from 750 vehicles per day to 600 a day.

As per the sales figures provided by Tata Motors, the company saw a 3 per cent decline in the passenger vehicle business during May 2007, against the corresponding month last year.

Indica reported sales of 12,002, a decline of 3 per cent over May 2006, while the Indigo family suffered higher losses with sales of 2,215, showing a sharp decline of 22 per cent over the same month last year.

However, the Sumo and the Safari, which are not part of the aforementioned 750, accounted for sales of 3,363, an increase of 18 per cent over May 2006.