Ashok Leyland announces a complete shutdown of its production units for 18 days: Decision due to poor demand


Ashok Leyland, one of the largest commercial vehicle manufacturers in India, announced today that seven of its facilities will have up to 18 non-working days this month because of continued weak demand for its products. According to the announcement, The manufacturing plant in Pantnagar, Uttarakhand, takes the worst hit with 18 non-working days. The Ennore plant near Chennai will have 16 non-working days. The units in Alwar, Rajasthan, and Bhandara, Maharashtra will stop the production for 10 days. And, two plants in Hosur, Bangalore will not work for five days.

The organization has taken this decision, in order to save the interests of the company. According to the reports last week, the company had declared that there would be a zero production for 5 days at the plant in Ennore starting September 6, excluding Sunday. These measures are due to sluggishness prevailing in the commercial vehicle market. And, the numbers are not to be ignored. According to the reports made by Scroll.in, the sale of all vehicles that comes under medium and heavy commercial vehicles category, including buses this month dropped 63% compared to last year ( from 12,420 units to 4,585 units). And, the sales of light commercial vehicles dropped 12%. Total vehicle sales were declined by 50% from 16,628 units to 8,296 units. It is noteworthy that carmaker Maruti Suzuki decided to shut down plant operations in Gurugram and Manesar in Haryana on 7th and 9th of September.

According to the society of Indian Automobile Manufacturers, passenger vehicle sales declined 30.9%. This crisis resulted in unemployment and laying off of employees. In the past one and half year, about 15,000 jobs were lost and 300 dealerships were closed. It has been said that the reason for the low sales rate is the decline in customer confidence coupled with a crisis in non-banking finance companies.


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