Ashok Leyland has drawn up plans for producing around 6,000 vehicles in the last three months of the current fiscal. If the remaining number of working days are taken into account, an increase to six-day a week looks inevitable from February. Further increase in working days would be considered on a weekly basis depending on the likely demand.

Executive director, marketing, Amol J Sandil said the company had split the production schedule for 1998-99 in the ratio 40:60 respectively for the first and the second half. The increase in the working days will meet the additional production target for the second half. The move to rationalise inventory levels has had thedesired effect, with the company and its dealers carrying minimal stock.

He also said in terms of sale, last quarter was always better. It is during this period corporates and institutions buy vehicles to utilise the budget allocated for the purpose. The truckers would also have some cash flow as freight rates begin to stabilise with the commencement of seasonal movement of goods from October. This year, the government has announced higher depreciation incentive for purchasing commercial vehicles in the current fiscal.

Sandil said the depreciation incentive might not result in more than a 5 per cent increase in demand. With most corporates unlikely to post big profits and freight rates remaining below economic levels for greater part of the year, depreciation benefit may not be attractive. The fact that the usual depreciation pull was not there this September adds more weight to that theory, he said.

Ashok Leyland, he said, is planning to sell about 28,000 to 29,000 vehicles this year as against 31,543sold last year. Company's exports are likely to improve by 10 per cent over last year's 2,150 vehicles.

Sandil said the company was receiving increasing amount of enquiries for vehicles especially those in the niche segment such as cement, steel transportation. However, he said it would be too early to talk of any revival. "Hopefully, we are seeing the bottom."

Freight rates, he said, have stabilised. Inbound freight rate to south has been buoyant, while outbound traffic continues to be depressed. A 6-8 per cent increase in freight rate has taken place.

On the performance of the company, Sandil said the company's three-pronged strategy of developing new markets, product expansion in the well- established market and impetus to customer care through increase in dealership etc has pushed up its all India market share by 10 per cent. "This would form the base for our future growth," he said.