Auto giant Ashok Leyland on Thursday declared five-day holiday for its Ennore plant, starting from Friday, as part of its corrective measures to cope with the sluggishness and contraction in the medium and heavy commercial vehicle (MHCV) market.
The Chennai-based multinational auto major in a notice to its employees on Thursday declared September 6, 7, 10 and 11 as non-working days. The notification added September 9 would be the fifth non-working day.
“The measure is due to continuing sluggishness and contraction in the commercial vehicle market. The need has arisen to continue the corrective actions to safeguard the interest of the company,” it said.
India’s second-largest MHCV manufacturer said wages for the above days would be decided after discussion with the labour union.
This notice is a continuation of the earlier one issued on August 23 specifying the schedule of non-working days. Employees of essential services, who are required to work, would be informed separately by the respective department heads.
The company has reported a 70% drop in MHCV truck sales in the domestic market during August to 3,336 units from 11,135 units, a year ago. In the April-July this year, it recorded a 15% year on year decline to 31,350 units in the wholesale volumes of its MHCVs due to the ongoing economic slowdown.
{{/usCountry}}The company has reported a 70% drop in MHCV truck sales in the domestic market during August to 3,336 units from 11,135 units, a year ago. In the April-July this year, it recorded a 15% year on year decline to 31,350 units in the wholesale volumes of its MHCVs due to the ongoing economic slowdown.
{{/usCountry}}Last month, auto component manufacturer Sundaram Clayton and its sister concern TVS-Lucas declared similar holidays, citing the economic downturn, setting alarm bells ringing in the automobile industry.