The uncertain economy has badly hit the automobile industry in particular. For the first time in twenty years, the sales of four and more multiple wheelers have drastically come down and so the automobile companies are reducing their production too.
India’s second-largest bus, truck and LCV maker, Ashok Leyland which has set up its bus assembly unit at the industrial park at Malavalli, about 43 km from Vijayawada, has put its plans on hold. This decision of Ashok Leyland was taken after the company posted 70 per cent drop in the sales of medium and heavy commercial vehicle in August.
A spokesperson of the company said that the company has full capacity and will restore the production once the demand picks up. Ashok Leyland has reported total sales of just 4,585 units in August which is very less compared to the 12,420 units of the corresponding month last year.
The bus assembly unit at Malavalli is spread across 75 acres and the foundation stone was laid on March 31st, 2018 when Chandrababu was the CM. Ashok Leyland had plans to acquire another 75 acres and also train the local people eventually to employee them. This unit could provide job opportunities for nearly 5000 directly and indirectly it could be.
Sadly the slowing economy is also hurting Andhra Pradesh opportunities of becoming an industrial hub.
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