The ongoing world financial crisis has badly impacted the commercial vehicle industry. High interest rates and liquidity crunch forced them to reduce production and think over cost cutting measures. Many automobile companies have cut production due to decrease in demand and low sale of commercial vehicles.

Ashok Leyland, Tata Motors, Volvo Eicher and many other commercial vehicle giants had either cut or slowed manufacturing process in their plants. TATA Motors has decided to close its Jamshedpur manufacturing plant for three days from November 6 to November 8, 2008. The decision is aimed to avoid inventory surplus following decline in demand. The plant is equipped to produces tractor trailer, multi-axle vehicles and tippers.

Volvo Eicher Commercial Vehicles has already decided to operate its manufacturing plant for 3 days a week till December. Hinduja Flagship Company, Ashok Leyland also announced today to cut production of commercial vehicles for the next two months. The company also termed power shortage in some parts of the  country in addition to decline in demand.