Ashok Leyland logs 60% drop in sales, 79% in output
The country's second-largest commericial vehicle manufacturer Ashok Leyland reported a 60 per cent drop in sales in November mirroring the slowdown in the industry.autos Updated: Dec 04, 2008 21:15 IST
The country's second-largest commericial vehicle manufacturer Ashok Leyland on Thursday reported a 60 per cent drop in sales in November mirroring the slowdown in the industry.
The company's domestic sales for the month stood at 1788 units as against 5366 units in the same month last year. Like in the case of market leader Tata Motor's whose medium and heavy commercial vehicle sales declined at a higher clip of 60 per cent during the month, Ashok Leyland's M&HCV sales fell by 67 per cent.
The company's production for the month crashed by 79 per cent indicating its problems with high inventories. Overall sales for the April-November period are down by 17 per cent while domestic sales are down 19 per cent.
With no hopes of a revival in the near future despite indications of an imminent excise duty reduction on commercial vehicles soon, the company has already deferred its Rs 700-800 crore plans for capacity expansions while cutting its production and reducing the number of working days to only three days a week at its plant.
"Taking into account the inventory in pipeline and the suppressed market demand, Ashok Leyland has decided to moderate the production plan for the next two months," the company had said last month. "The decision to reduce the number of working days has also been partially influenced by the problems encountered by the suppliers as a result of power shortage in some parts of the country."
The November figures come at the back of disappointing sales in September and October when it had declined by 15 per cent and 50 per cent respectively.