Truck, bus makers cut output

Manufacturers of medium- and heavy-truck and buses in India have reduced production to almost one-third of their capacities, some almost by 60 to 80%, due to falling demand caused by high interest rates and unavailability of finance. Ashok Leyland Ltd. (ALL) has reduced production to 1,300 units per month from 7,000 units. Tata Motors Ltd. has also cut production to 3,500 units per month from 14,000 to 15,000 units. The economic crisis is also expected to affect the proposed joint ventures of ALL-Nissan, Hero Motors-Daimler and Eicher Motors-Volvo. (December 9, 2008)