Auto Industry Recession: Ashok Leyland’s Crisis Increased! Production will remain stagnant for 15 days this month: In the midst of the festive season, Ashok Leyland, an auto sector veteran, has taken a big decision. Actually, in October, the company will stop production work in different parts of the country for 15 days. A statement issued by Ashok Leyland of Hinduja Group said, “There will be no production work in the plant of different locations of the company for 2-15 days in the month of October.”
However, the company has not mentioned the plants where the production will be closed. This is the second consecutive month when Ashok Leyland has decided to keep his plants closed. Earlier in September, the company announced to shut down the plants for 5 to 18 days.
However, this decision has been taken by Ashok Leyland in the festive season. This season is considered to be the ‘golden period’ for the auto sector. The government is also believing that the festivity of the auto sector will be removed in the festive season.
The company has offered VRS
Earlier, Ashok Leyland had also announced plans to step down from the company for executive level employees. Under this, the company has issued voluntary retirement scheme (VRS) and employee separation scheme (ESS) by issuing notice to employees. The company introduced this scheme at a time when its employees were on strike to increase the bonus.
How about the sale in September?
Please tell that Ashok Leyland’s total sales of commercial vehicles fell 55 percent to 8,780 vehicles in September. The company sold 19,374 vehicles in the same month a year ago. According to the company, its total commercial vehicle sales in the domestic market fell by 56.57 per cent to 7,851 vehicles as against 18,078 units in September 2018. During this period, the company’s medium and heavy commercial vehicle sales fell 69 per cent to 4,035 vehicles. The figure was 13,056 units in the same month a year ago. At the same time, sales of light commercial vehicles in the domestic market fell 24 per cent to 3,816 units from 5,022 units in September 2018.