Daimler India Commercial Vehicles Pvt Ltd (DICV) has announced that it will observe three non-production days each in September and in October on the prolonged decline in the demand for commercial vehicles (CVs), primarily caused by slowed down construction activities, excessive freight carrying capacity created by the axle load norms among others.

"We confirm that DICV will have three non-production days in September and 3 non-production days in October," the company said in an official statement.

Satyakam Arya, managing director and chief executive had told Mint in a recent interview that DICV had observed four no-production days in August and the Chennai plant is currently operating only one shift instead of two shifts per day.

DICV has also said in its note that permanent employees have been granted additional vacation days to help compensate. The company, however, has not clarified whether all or a fraction of all permanent employees based in Chennai are given additional vacation as the downturn in the domestic market continues to persist.

"We are closely monitoring the situation and adjusting our production line depending on market demand," the company spokesperson said.

Earlier, Arya had told this publication that the sales of medium and heavy commercial vehicles (MHCVs) will not pick up before 2021. "We expect the MHCV segment to see a fall of 25-30% this year and 10-15% next year mainly on BSVI norms. The growth story in MHCVs will return only in 2021 and not before that," he had said.

For Daimler Trucks globally, India is the fifth largest market for CVs.