Reeling under the effect of the COVID-19 pandemic, Ashok Leyland reported a steep decline of 89% in sales for the month of May 2020. The company recorded a sale of 1,277 units in the previous month, witnessing a 89% drop owing to the nationwide lockdown, in comparison to 12,778 units that were sold in May 2019.
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The company had reported zero sales for the month of April this year, similar to other CV manufacturers in the country. However, the company had announced on May 13 that it is resuming operations at its production plants across the country.
For May 2020, the company sold 1,126 units of Light Commercial Vehicles (LCVs), seeing a drop of 73% in sales, and 151 units of Medium and Heavy Commercial Vehicles (MHCVs) that recorded a decline of a shocking 98%.
Ashok Leyland, however, has been putting up a hopeful front in terms of the future of sales and the CV industry. In a statement, Vipin Sondhi, Managing Director & CEO, Ashok Leyland, said, “We will gradually ramp up production across facilities after taking into consideration the Work in Progress (WIP) that were on hold at the time of announcement of lock-down, the supply chain readiness after opening and most importantly the preparedness of the ancillary units to supply us critical components, for sustained production of vehicles.”
Like its counterparts, Ashok Leyland too is now looking forward to an incentivised scrappage policy to come from the government to stabalise the situation.