On Friday, the company announced that its October domestic sales declined again sharply by 37% to 9,074 units as compared to 14,341 units sold in October 2018.
Hinduja group flagship firm Ashok Leyland (ALL) has once again declared production holidays. This time, it has decided to go for a maximum of 12 days in some of its plants across the country.
Earlier in September/October, the company had gone for a maximum of 18 days.
The company, which had earlier gone with the production cuts across its plants since August for a number of days in each month, has seen no clear sign of early recovery in the CV side, particularly on its value segment — M&HCV — both from retail as well as fleet operators. With the ensuing BS VI transition, effective April 1 next year, adding fuel to the fire, the company has decided to avoid any inventory pile up and hence declared fresh production holidays (non-working days).
In a communication to the stock exchanges, Ashok Leyland said that 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 in November. The company has not given any further details on the matter.
On Friday, the company announced that its October domestic sales declined again sharply by 37% to 9,074 units as compared to 14,341 units sold in October 2018. While its value segment M&HCV sales declined by 50% during the month to 4,565 units (9,062 units in corresponding period), the LCV segment saw a decline of 15% to 4,509 units as against 5,279 units sold in October last year. Cumulatively (April-October 2019), the total domestic sales fell by 28% to 73,324 units (101,371 units) and M&HCV segment in particular witnessed a whopping decline of 38% to 44,53 units (71,536 units in corresponding period) in October 2019.
As per SIAM data, the overall CV industry sales for the six-month period ended September 2019 declined by 23% to 375,480 units (487,319 units in corresponding period) and M&HCV segment in particular reported a decline of 36% to 122,521 units (190,801 units in corresponding period).
The company had earlier announced non-working days across its plants in Chennai, Hosur, Pant Nagar (Uttarkhand), Alwar and Bhandara (Rajasthan). A maximum of 18 non-working days were announced at its Pant Nagar plant and 16 days at its Ennore plant (Chennai) in September/October period.