This is forth consecutive month for which Maruti Suzuki has had to cut productions because of low demand of cars and stocking of inventory.
The Indian automotive market has not been doing particularly well since the beginning of this year. The month of April recorded the lowest sales in the passenger vehicles segment in the last eight years, witnessing a decline of 17.07%. The same trend continued in the month of May as well. All major manufacturers again reported a decline in sales for May.
Maruti Suzuki too has had to witness low sales for the last couple of months, so much so that they plan to shut down production of their vehicles for 7 days. This decision comes in the face of low demand for cars and Maruti Suzuki needs to clear up the stocks of vehicles already built up for so many days.
Maruti Suzuki India had already cut production by 9.6% to 147,669 units of vehicles in April this year from 163,368 units of vehicles in April 2018. Maruti Suzuki has now announced a further cut in vehicle production by over 18% in May, according to a regulatory filing. This is the forth consecutive month for Maruti Suzuki that they have had to cut productions.
Apart from the Super Carry segment, the company had to reduce production in all of the segments, including the compact and mini cars segment which constitutes of Maruti’s most selling cars of all times. Maruti Suzuki India has reduced productions of their vehicles which includes the Alto, Swift and Swift desire by 18.88% to 1,48,095 units as compared to 1,82,571 units in May 2018.
MSI cut production in the mini vehicle segment by 42.29% to 23,874 units last month as against 41,373 units in the year-ago period. They also reduced production in the compact cars segment by 9.54% to 84,705 units in May from 93,641 units in corresponding month of last year. As for utility vehicles, that too saw a decline by 3.21% to 24,748 units, as against 25,571 units in May last year.