New Delhi | Jagran Business Desk: Amid the ongoing slowdown in the auto sector, Hinduja flagship firm Ashok Leyland has announced closure of its Ennore plant in Chennai starting Friday, according to reports.

The company reportedly made the announcement in a statement where it cited “sluggishness and contraction in the commercial vehicle market”.

“As already informed, due to continuing sluggishness and contraction in the commercial vehicle market, the need has arisen to continue the corrective actions to safeguard the interest of the company. Hence, it has been decided to declare 06.09.2019, 07.09.2019, 10.09.2019 and 11.09.2019 as non-working days and 09.09.2019 as 6th-day non-working day,” the company’s statement was quoted as saying.

However, according to a NDTV report, the country’s third-largest commercial vehicle manufacturer denied releasing any such official annoncement on the production shutdown. 

Ashok Leyland on Tuesday reported a 47 per cent decline in total commercial vehicle sales at 9,231 units in August.

The medium and heavy commercial vehicle sales stood at 5,349 units last month as against 13,158 units in August 2018, down 59 per cent. Light commercial vehicle sales stood at 3,882 units as compared with 4,228 units in August last year, a dip of 8 per cent.

On Wednesday, Maruti Suzuki decided to shut down production of passenger vehicles in Gurugram and Manesar plants in Haryana for two days. Reeling under severe slowdown, the auto major had reduced its production by 33.99 percent in August, making it the seventh straight month of reduction.

Posted By: Abhinav Gupta