Maruti cuts production for the ninth straight month in October
While the company reduced production of mini cars Alto, S-Presso and old WagonR 39% to 20,985 units in the month under review, those of compact cars (New WagonR, Celerio, Ignis, Swift, Baleno, DZire) was cut 13.6% to 64,079 units. Production of mi...
This is the ninth consecutive month that the company has cut production.
As per data filed to the bourses, the company produced 119,337 vehicles in October, which is a decline of 20.7% over 150,497 units produced in the year-ago period.
While the company reduced production of mini cars Alto, S-Presso and old WagonR 39% to 20,985 units in the month under review, those of compact cars (New WagonR, Celerio, Ignis, Swift, Baleno, DZire) was cut 13.6% to 64,079 units. Production of midsize sedan Ciaz dropped 45% to 1,922 units in the same period.
The company produced 22,736 utility vehicles (S-Cross, Ertiga, XL6, Vitara Brezza) during the month, as against 22,526 units in the year-ago period.
Production of vans Omni and Eeco declined 45% to 7,661 units last month. While that of light commercial vehicle Super Carry dropped 10% to 1,954 units.
Maruti Suzuki’s wholesale domestic passenger vehicle dispatches last month inched up by 2.3% to 139,121 units but its cumulative volumes in the first seven months have fallen by 23% to 802,643 units.
Given the dismal volume performance parent Suzuki Motor Corporation earlier this week revised downwards growth projections for the India subsidiary by a whopping 20%.
A guidance of 20% decline is a significant change from 4% growth the company had forecasted at the beginning of the fiscal year. At the best, Maruti Suzuki may cross 1.5 million units for the FY-20. To be sure, as part of its mid-term vision 2.0, Maruti Suzuki had set a target of attaining 2 million unit by 2020, with the 20% decline forecasted over last financial year, the company will be missing the target by a significant a half million units.