Chennai-based truckmaker Ashok LeylandNSE -4.00 % registered a steep reduction in domestic sales in September compared to the year-ago period, impacted by a slowdown in business over the past three quarters that has forced automakers to reduce production and cut inventory to align output with slowing demand.
Ashok Leyland said in its release that its domestic business in terms of volumes dropped 57% to 7851 units.
Leyland has a product portfolio ranging—tonnage-wise—2.5 to 39 tonnes, selling trucks, buses, intermediate commercial vehicles, light-commercials, vehicles for defence and special applications, and diesel engines for industrial, gensets and marine applications.
The release indicated that Ashok Leyland took the biggest hit in the medium and heavy commercial vehicles, generally reflecting the momentum in economic activity; its Light Commercial Vehicles such as Dost did relatively better at a 24% drop in vehicle sales compared to a steep 69% in the MHCV segment in September.
Including exports, Ashok Leyland’s sales volume took a 55% knock at 8780 units.
Ashok Leyland officials had expressed optimism that there would be revival in sales around December as a pre-sales push ahead of the phasing out of BS-IV vehicles in April 2020. The company, like many other automakers, has been effecting periodic production cuts by announcing non-production days over the last three-four months.