Commercial vehicle manufacturer Ashok Leyland on Friday said that its facilities at multiple locations will not operate for two to 15 non-working days during the month of October. The company did not specify which facility will stay shut for how many days.

The company, part of the Hinduja Group, made the announcement in a filing to the stock exchanges, and said this was done to align their “production in line” with their sales. In September, seven facilities of Ashok Leyland had declared up to 18 non-working days because of continued weak demand for the company’s products.

Ashok Leyland has seven facilities in India – four in Tamil Nadu and one each in Maharashtra, Rajasthan, Uttarakhand.

The development came amid a slowdown in the automobile sector in the country.

The sale of domestic vehicles continued its downward trend in September even though the numbers improved compared to the month before. But manufacturers earlier this week had said they were hopeful of buyers returning to the market in the ongoing festive season.

Ashok Leyland sold 4,035 units of medium and heavy commercial vehicles in September – a 69% decline.

Top car manufacturers such as Maruti Suzuki India and Mahindra and Mahindra Ltd have also temporarily closed some factories to trim mounting stocks at dealerships and factories because of weak retail demand. Some car dealers have been unable to boost inventory as banks and lenders are cutting back on credit. The credit problem has been attributed to a crisis in the non-banking financial company sector.


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