Ashok Leyland declares production cut back in November
Published On Nov 03, 2019
The company continues to rationalise the production of trucks across various plants
The prevailing downturn in the automotive industry, lack of demand for vehicles is putting pressure on vehicle makers to align production to limit inventory. After several production cuts in the last few months, Ashok Leyland declares further 0-12 days of production cuts in the month of November 2019.
In a notification to the stock exchanges on Friday, the company said, “We hereby inform you that in order to align production in line with the market demand for our products, the Company proposes to observe non-working days ranging from 0-12 days during the month of November 2019.”
It is imperative upon vehicles manufacture to adjust the demand-supply gap persists in the market, as the sales across the segments continue to decline YOY. This means regulating production cut to avoid stockpile at factories and dealerships. Offering some relief to vehicle makers, the October sales have witnessed a month-on-month upsurge in sales, thus helping to clear sizable part of the stocks at dealerships across the country.
Ashok Leyland reported a cumulative sale of 78,401 units, down 28% YoY between April-October 2019.
