Ashok Leyland domestic sales drop 74%

Chennai-based commercial vehicle manufacturer, Ashok Leyland had reported 74 per cent drop in domestic sales in December 2008 at 1,420 units against 5,488 units sold in the same month last year. However, company's export sales have rose by 8 per cent to 901 units in December from 852 units compared to same period last year.
 
Total production had dropped by 86 per cent to 960 units during the month as compared to 7,110 units produced last December.
 
Company's goods carrying medium and heavy commercial vehicle (M&HCV) segment domestic sales dropped by 87 per cent to 637 units as against 4153 units. While production fell by 90 per cent to 287 units in December 2008 as compared to 5,434 units a year ago. M&HCV's exports increased to 424 units from 194 units, an increase of over 100 per cent.
 
It may be recalled last month country's second largest maker of trucks, buses and other commercial vehicles, Ashok Leyland, said that it has decided to bring down the number of working days at its factories to three a week to keep inventory levels in check.
 
Company's statement in November stated that demand for heavy duty commercial vehicles has fallen owing to inadequate funds for buyers and high interest costs. That has led it to moderate production for the next two months until December-end, the company said.
 
Ashok Leyland's total production between April and December 2008 has dropped by 20 per cent to 47,293 units as compared to 59,811 units for the same period last year. Domestic sales have come down to 38,510 units from 51,180 units, a drop of 24 per cent, while exports increased by 6 per cent to 5,147 units from 4,818 during the same month a year ago.
 
Total sales from April to December 2008 dropped to 43,657 units from 55,998 units, a drop of 22 per cent.