Ashok Leyland puts off expansion plan (Live mint.com 16th Jan 2008)Ashok Leyland Ltd, India’s second largest seller of trucks, is putting off by two years the opening of a planned facility that would have increased its production capacity by at least 50%. The move comes on the back of rising interest rates, which have reduced demand for commercial vehicles in the current financial year.
One economist said the decline in demand for trucks did not bode well for the economy. “Slowdown in commercial vehicle sales is a clear signal of a forthcoming slowdown (in the economy),” said Suresh Babu, assistant professor of economics at the Indian Institute of Technology (IIT), Chennai.
The Chennai-based Ashok Leyland had originally planned to add 100,000 units to its existing capacity of 84,000 units by the first half of 2010. This increase was to be across two locations—Chennai and Uttarakhand. Now, the company says it will only go ahead with the plan at Uttarakhand, but keep the 50,000-unit expansion in Chenani for 2012. More
One economist said the decline in demand for trucks did not bode well for the economy. “Slowdown in commercial vehicle sales is a clear signal of a forthcoming slowdown (in the economy),” said Suresh Babu, assistant professor of economics at the Indian Institute of Technology (IIT), Chennai.
The Chennai-based Ashok Leyland had originally planned to add 100,000 units to its existing capacity of 84,000 units by the first half of 2010. This increase was to be across two locations—Chennai and Uttarakhand. Now, the company says it will only go ahead with the plan at Uttarakhand, but keep the 50,000-unit expansion in Chenani for 2012. More
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