Output cut, 3-day week at Ashok Leyland

Demand slowdown has started taking a toll on India Inc. Close on the heels of Tata Motors8217; decision to close the Jamshedpur plant for three days, Hinduja-owned Ashok Leyland today said it would cut the production of its commercial vehicles in the next two months and its manufacturing plants will work only three days a week till December on account of decrease in demand.

8220;Taking into account the inventory in pipeline and the suppressed market demand, Ashok Leyland has decided to moderate the production plan for the next two months,8221; the company said. Its manufacturing facilities would also reduce the number of working days to three a week till December this year, it added. 8220;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,8221; the company said.

Lately, medium and heavy commercial vehicles market had been facing problems of inadequate funding and high interest costs resulting in reduction of market demand, it added. Meanwhile, the company today reported a 50.23 per cent decline in vehicles sales in October.