Chennai-based India’s second largest commercial vehicle manufacturer, Ashok Leyland today posted a decline of 74 per cent in domestic sales in December at 1,420 units as against 5,488 units sold in the same month a year ago.
In addition, to bring its inventory under control, the company was forced to shut down production at its plants resulting into a cut in output by more than 86 per cent during the same month.
Its output fell to only 960 units during the month as compared to 7,110 units produced in the corresponding month a year ago. Company executives had mentioned earlier that the company will undertake heavy production cuts during December and January.
Lack of financing from banks and high interest rates impacted the company’s goods carrying medium and heavy commercial vehicle (M&HCV) segment. This truck segment suffered massively as sales plunged by almost 87 per cent at 637 units as against 4,153 units.Exports of the company, however grew marginally by 5.75 per cent at 901 units as against 852 units.
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