Covid-19 woes: Ashok Leyland plants to operate only for 5 to 10 days in June

The Chennai-based company had previously closed its plants during May 2021 for about 7 to 15 days due to Covid-19.

By:Updated: Jun 02, 2021 8:11 AM

Reeling under the pandemic-induced lockdown coupled with the slowdown in demand, the Hinduja flagship commercial vehicle major Ashok Leyland (ALL) expects its plants to be operational in June only for five to ten days. The Chennai-based company had previously closed its plants during May 2021 for about 7 to 15 days due to Covid-19. The plants were still not fully operational due to lockdown that has been ongoing in the states where the company’s units have been located, it said in a disclosure to stock exchanges. “We expect the opening up announcements by the respective state governments in a phased manner, resulting in an impact of our operations in June 2021 also. The demand scenario is still to pick up due to lockdown. Given the above, we expect that our plants will be operational only for 5-10 days, for June 2021,” the company said. ALL has seven manufacturing plants across the country.

While announcing the closure in May, ALL had said then said that the demand outlook for all its products was expected to be affected temporarily. It had carefully studied the demand situation and efforts had been made to match the demand on the one hand while being cognizant of the disruptions in the supply situation. The company had reiterated that it will continue to meet the requirement of defence vehicles and also ensure support of essential parts and aggregates for its fleet, enabling movement of essential goods and services including a 24-hour helpline to ensure high uptime of the vehicles already on road.

ALL on Tuesday reported a 66% decrease in its monthly sales in May 2021, m-o-m, at 2738 units as compared to 7,961 units in April 2021. Though when compared with the May 2020 volume of 1277 units, it has recorded 114% growth, industry analysts, said that May 2020 numbers stood at a low base because the companies had only started operations in the second week of the month, coming out of the first Covid-19 nationwide lockdown. ALL had announced a slew of measures to support its customers and drivers during the Covid pandemic including providing critical support to stakeholders and measures such as emergency support to vehicles for essential services through their 24×7 helpline.

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