The massive thrust on self-reliance, along with focus on generating local demand and resurrecting local supply chains, as announced by Prime Minister Narendra Modi, should provide enough impetus to kick start the economy. The commercial vehicle (CV) industry expects to stand for gain with the announcement of `20 lakh crore reforms-cum-stimulus package as announced by the PM, said Vipin Sondhi, managing director & CEO, Ashok Leyland. Announcing the commencement of production at the company’s plants across the country on Wednesday, Sondhi said the announcement of reforms-cum-stimulus to the tune of 10% of GDP, amounting to `20 lakh crore, had the potential to be sustainably beneficial to all sectors of the economy. Particularly, the CV industry will stand to gain as the economy starts to move again.
These measures are the need of the hour and, frankly, are more than expected given the limited fiscal room that was available, he added. He further said, “With the pride of ‘Make in India’ through quality, we look forward to a stronger, self-reliant India where everyone prospers.”According to SIAM, the CV industry had reported 32.40% degrowth in the just-ended 2020 financial year to 752,022 units (including LCVs) as compared to 11,12,405 units in the fiscal 2019. Ashok Leyland per se had reported degrowth of 37% to 125,253 units in fiscal 2020 against 197,366 units sold in fiscal 2019.
Meanwhile, “With the relaxation of the lockdown, we have resumed operations in all our plants across the country, after obtaining necessary approvals from the relevant authorities. In accordance with the stated guidelines, as given by the Union Ministry of Home Affairs (MHA) and the relevant local authorities, we shall be ensuring all the necessary health and safety protocols in our facilities, for all stakeholders,” Sondhi said on Wednesday. “We will gradually ramp up production across facilities after taking into consideration the work in progress (WIP) that were on hold at the time of announcement of lockdown, the supply chain readiness after opening and, most importantly, the preparedness of the ancillary units to supply us critical components for sustained production of vehicles,” he added.
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