Mumbai, July 15 (IANS) Commercial vehicle maker Ashok Leyland on Monday said that owing to the “weak demand and outlook for the industry”, it will close its Pantnagar plant in Uttarakhand for 9 days.
“The Company’s Plant situated at Pantnagar will remain closed from July 16, 2019 to July 24, 2019 (both days inclusive), owing to weak demand and outlook for the industry,” Ashok Leyland said in a regulatory filing.
The auto industry has been the worst hit by the massive consumption slowdown and a liquidity crunch in the country. According to industry body SIAM, a slump in vehicle sales has been seen for consecutive months across segments.
For the month of June, domestic passenger car sales declined by 24.07 per cent and the commercial vehicle segment, a measure of growth in the economy, slipped down by 12.27 per cent.
Experts have pointed out that the slowdown has resulted in cut-down in production by some of the OEMs, which is a reflection of the continuing tough conditions in terms of tight liquidity, increased pricing and reduced rural spend.