india

Updated: Oct 04, 2019 22:40 IST

With the crisis in the auto sector deepening, Ashok Leyland, the country’s second largest truck manufacturer, on Friday notified yet another series of non-working days for the month of October extending from 2–15 days across the country.

Battling the sluggishness in the commercial vehicles market, the UK-based Hinduja Group’s flagship company has informed both the NSE and BSE that it is scaling down production in view of the weak demand.

“We hereby inform you that to align our production in line with our sales, the company’s plants at various locations will be observing non-working days ranging from 2–15 days, in the month of October 2019,” the company has said.

This is the fourth time that the auto giant, is going ahead with slashing production, citing market slowdown for its products. Since August, Ashok Leyland has been declaring production holidays every month, indicating the crisis that has engulfed the auto industry, one of the largest employers of man power besides a supply chain of medium and small units dependent upon them.

According to industry sources, Ashok Leyland’s sales have seen a sharp fall of 55 per cent in September this year, compared to the corresponding period last year. And, the decline in sales has been continuing for the past three months.

Last fortnight, it had announced five non-working days at the company’s Ennore plant in north Chennai. As per the notice, September 29 and 30, October 1, 8 and 9 were declared non-working days.

Prior to that, it had declared a total of 59 non-working days at all its plants across the country, with the highest 18 days for its Pantnagar unit in Uttarakhand.

And earlier, a few days in September--- 6, 7, 10 and 11 were declared as non-working days.

At the major facility in Ennore alone, Ashok Leyland employs a total workforce of over 5,000 employees, including 3000 contract workers. Wages for the non-working days would be decided after talks with the Ashok Leyland Employees Union, it was made clear earlier. Apart from Ennore and Pantnagar, it has two plants at Hosur in Tamil Nadu besides Alwar in Rajasthan and Bhandara in Maharashtra.

At present, the company is said to be pinning its hopes on the government’s scrappage policy to make a turnaround. For the country has 9 lakh trucks aged between 15 to 25 years. Scrapping a substantial number of this fleet could enhance capacity utilisation of truck manufacturers, it is being pointed out.