The government's move to help the beleaguered commercial vehicles (CV) segment notwithstanding, major manufacturers, including Ashok Leyland and Tata Motors, are still keeping their production at minimal levels to match sluggish demand.
"As of now the company has decided to continue with the three-day a week production schedule till the end of January," a spokesperson of Ashok Leyland said.
The company started the three-day week schedule since December in the wake of a drastic drop in demand.
Tata Motors, which had in the recent past resorted to multiple temporary block closures at its units in Jamshedpur, Pune and Lucknow, is also watching the market demand.
"Currently, our plants are working normally but we are extremely flexible to react to market situation and will do so according to demand," a Tata Motors spokesperson said.
Another firm VE Commercial Vehicles is also keeping its production in check.
"We had trimmed production in December. Going forward we will produce according to demand, any increase or decrease will depend on it," a company spokesperson said.
In December 2 stimulus package, government had allowed leading public sector banks to provide line of credit to non-banking finance companies for retail financing of CVs. Besides, an accelerated depreciation of 50 per cent will be provided for CVs to be purchased between January 1 and March 31 this year.
Also state governments were given a one-time assistance under the Jawaharlal Nehru National Urban Renewal Mission for purchasing buses.
However, industry analysts pointed out that the government's moves will take time for the real effect to kick in and production to reach normal levels.
