Ashok Leyland places Andhra Pradesh unit on maintain as gross sales fall, Auto Information, Automobilnews
VIJAYAWADA: Ashok Leyland Ltd, India’s second largest bus, truck and LCV maker, seems to have put its plans to fee its bus meeting unit on the mannequin industrial park at Malavalli, about 43 km from right here, on maintain as gross sales of its merchandise have been on a downward spiral for months in a cooling financial system.The Hinduja group flagship had finished the bhoomi puja for its Malavalli plant within the presence of then AP chief minister N Chandrababu Naidu on March 31, 2018. The unit was to have an put in meeting capability of 4,800 buses each year, Vinod Okay Dasari, the then CEO and managing director of Ashok Leyland, had stated. The unit was to be commissioned in six months time.
The unit, which was to be the eighth manufacturing unit of Ashok Leyland, was to assemble buses, together with electrical automobiles, Dasari, who traces his roots to Krishna district in AP, had stated. The unit was to ultimately make use of 5,000 employees straight.
“We aren’t simply into providing employment. Our mannequin is to coach younger individuals, each women and men, within the space surrounding our plant. The chosen candidates can be put via an earn-and-learn programme by which they should full a four-year diploma course recognised by the federal government, and work with us throughout this time. They are going to be paid throughout this era,” Dasari had stated.
The corporate’s resolution to place the completion of its Malavalli unit on maintain was in all probability prompted by the precipitous drop, almost 70 per cent, within the gross sales of its medium and heavy industrial automobile in August. The Chennai-based firm reported gross sales of three,336 models in August, in comparison with the 11,137 models within the corresponding month final 12 months. It posted whole gross sales of 4,585 models in August in its automobile portfolio, together with buses, from 12,420 models within the earlier 12 months.Ashok Leyland had acquired 75 acres of land for the bus meeting unit at Malavalli industrial park, with the choice of buying one other 75 acres. The meeting unit’s manufacturing may very well be ramped as much as 9,600 models as a result of the unit was to be modular in its design.
“At this level of time we have now sufficient capability in our current crops to satisfy the present demand. The Vijayawada plant can be commissioned as and when the demand picks up,” an organization spokesman instructed TOI on Tuesday, declining to elaborate additional.
Native business sources have expressed dismay on the delay in commissioning of the Vijayawada plant. “The Ashok Leyland bus meeting unit would have raised AP’s profile as a vacation spot for the car business, as a result of it will have been assembling heavy industrial automobiles in part of the state that has only a few manufacturing models,” a former chairman of CII-AP stated, requesting anonymity.