Ashok Leyland and Tata Motors cutting production

Ashok Leyland and Tata Motors cutting production

Indian automakers Ashok Leyland and Tata Motors have announced that they are cutting production as demand is low in the market.

The market is also suffering from credit crunch and high interest rates.

Tata Motors has announced that they are shutting down their main plant for heavy commercial vehicles at Jamshedpur for three days.

Ashok Leyland has said that they would operate their plants for three days a week till December.

Volvo Eicher Commercial Vehicles has also confirmed that they had cut their productions last month.

Ashok Leyland added: “This decision has also been partially influenced by the problems encountered by the suppliers as a result of power shortage in some parts of the country.”

Tata Motors had this to say: “Tata Motors is taking a block closure at Jamshedpur from November 6 to November 8, 2008, to match production with demand of vehicles produced at the Jamshedpur plant to avoid build-up of inventory either in the company or with our dealers.”