Domestic commercial vehicle majors -- Tata Engineering and Ashok Leyland -- have piled up huge stocks to meet the higher sales expected in the last month of the current fiscal.
During March, operators usually queue up to purchase new vehicles to avail depreciation benefits, resulting in higher sales. Also, companies show higher billings by extending credit to dealers to shore up their annual revenue, auto analysts said.
The spokesmen for both companies confirmed that the increase in production was aimed at meeting the higher sales demand expected in March.
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Tata Engineering produced 7,330 medium and heavy commercial vehicles (M&HCVs) in February, over 47 per cent higher than its sales of 4,974 units in the period. According to the Society of Indian Automobile Manufacturers' (SIAM) figures, the company's total production during April-February is 52,142 units, against sales of 48,930 units.
Tata Engineering has also stepped up production of utility vehicles during the month, producing 3,537 units against sales of 2,440 units. As a result, its cumulative production so far this fiscal, stands at 24,339 units against sales of 21,436 units, making it the company with the largest inventory in the UV segment.
Its competitor, Ashok Leyland, has also built up higher inventories as a percentage of sales. Its total production during April-February stood at 27,888 units against sales of 22,909 units. During February, it produced 2,917 units and sold 2,589 units, as per SIAM figures.
Both companies usually register their highest sales in March. Last year, Tata Engineering sold 8,505 units (inclusive of exports) during March, out of total sales of 55,511 units. Ashok Leyland sold 4,348 units during March 2001, from its annual sales of 31,917 units.