Ashok Leyland places Andhra Pradesh unit on maintain as gross sales fall, Auto Information, East Auto Information
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 performed 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 Ok Dasari, the then CEO and managing director of Ashok Leyland, had mentioned. 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 autos, Dasari, who traces his roots to Krishna district in AP, had mentioned. The unit was to finally make use of 5,000 employees straight.
“We aren’t simply into providing employment. Our mannequin is to coach younger folks, each women and men, within the space surrounding our plant. The chosen candidates will probably be put by means of an earn-and-learn programme during which they must 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 mentioned.
The corporate’s choice to place the completion of its Malavalli unit on maintain was in all probability prompted by the precipitous drop, practically 70 per cent, within the gross sales of its medium and heavy business car in August. The Chennai-based firm reported gross sales of three,336 items in August, in comparison with the 11,137 items within the corresponding month final yr. It posted whole gross sales of 4,585 items in August in its car portfolio, together with buses, from 12,420 items within the earlier yr.
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 might be ramped as much as 9,600 items 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 present crops to satisfy the present demand. The Vijayawada plant will probably be commissioned as and when the demand picks up,” an organization spokesman advised 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 auto business, as a result of it could have been assembling heavy business autos in part of the state that has only a few manufacturing items,” a former chairman of CII-AP mentioned, requesting anonymity.