Maruti Continues To Cut Production 3 Months In A Row

May 10,2019

Maruti has cut down its vehicle production in Apr-19 by 10% across its factories due to subdued demand and piling dealer stock. This is the 3rd month in a row that Maruti has slashed its production.

In Apr1-9 the total production stand sat 1,47,669 units which also includes Super Carry LCV which is a de-growth of 9.6% over Apr1-8. The major models getting affected are Alto, Swift and Dezire. Infact other than utility vehicle segment, Maruti has cut production in all other segments including compact and mini segment.

The silver lining was utility vehicle segment where the production has increased by 8.4% to 24,516 units in Apr-19, as against 22,607 units in Apr-18. The sales of van has declined by 25.8% to 10,688 units from 14,407 units in Apr-18.

The production cut has been at 8% in Feb and 20.9% in March and the trend continues in Apr which seems to be a worry for the company.

Currently the annual installed capacity of Maruti is at 15.5 lakhs at its two plants at Gurgaon and Manesar and in addition to it the Suzuki owned Gujarat plant has an installed capacity of 2.5 lakhs unit from the first line.
The second production line of production at Gujarat plant has also been started but is yet to reach its peak capacity of 2.5 lakh units per annum.

Image Source: Autocar India
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Autojobs4ublog Team