Major commercial vehicle makers in India, including Ashok Leyland and Tata Motors, are cutting down productions due to a slump in sales triggered by credit crunch and high interest rates.
While Tata Motors has decided to shut down for three days its main plant for heavy commercial vehicles at Jamshedpur, which produces tractor trailer, multi-axle vehicles and tippers, Ashok Leyland said it will be operating its manufacturing units only three days a week till December.
An official of Volvo Eicher Commercial Vehicles also said the company had cut productions in October but declined to give a forecast for the ongoing month.
Hinduja Flagship company Ashok Leyland today announced to cut production of its vehicles in the next two months. Its manufacturing plants would work only three days a week till December on account of decrease in demand.
"This decision has also been partially influenced by the problems encountered by the suppliers as a result of power shortage in some parts of the country," the company said.
During the last few weeks, medium and heavy duty commercial vehicles market had been facing problems of inadequate funding and high interest costs resulting in reduction of market demand, it added.
Yesterday, commercial vehicle major Tata Motors has also announced to pull the shutters down of its Jamshedpur facility due to slump in demand.
"Tata Motors is taking a block closure at Jamshedpur from November 6 to November 8, 2008, to match production with demand of vehicles produced at the Jamshedpur plant to avoid build-up of inventory either in the company or with our dealers," a company spokesperson had said.
