Maruti Suzuki Reduces Production For The 8th Month

India’s largest passenger vehicle manufacturer; Maruti Suzuki has cut its car production for the straight eight months in a row. Almost all major manufacturers (Toyota, Honda, Hyundai, Mahindra) have reported a double-digit decline in new car sales.

Must Read: The Indian Automobile Crisis | Explained

• Maruti Suzuki India has reduced its vehicle production by a staggering 17.48% in the month of September.
• In an official filing by Maruti Suzuki, the company reported that it has produced a total of 1,32,199 units in September as against 1,60,219 units in the year-ago month.
• Affected car models include; Alto 800, New WagonR, Celerio, Ignis, Swift, Baleno and Dzire which sold 98,337 units as against 1,15,576 units in September last year. A drop of 14.91%.
• Vitara Brezza, Ertiga and S-Cross reported a decline from 18,435 units as compared with 22,226 units last year.
• Maruti Suzuki premium sedan; Ciaz saw its production reduced to a mere 2,350 units in September from 4,739 units in September 2018.

Following a similar trend, Tata Motors reports a 63% drop in production of passenger vehicles in September 2019 at 6,976 units as compared to 18,855 units in September 2018.

What is behind the Indian automobile crisis?

• RC Bhargava, Chairman of India’s biggest car manufacturer Maruti Suzuki believes that India’s vehicle industry, which is reeling under monstrous deals downturn has constrained numerous foreign organizations to close their companies in India.
• He said that numerous auto organizations in India are making misfortunes at present because of which numerous foreign companies, including General Motors and Ford, that had put resources into India are quitting.
• Talking about the Indian car industry crisis in the auto segment, Bhargava said one of the key explanations behind this was the administration’s choice that all models of vehicles in India should now coordinate match benchmarks followed in European nations. However, the capacity of Indians to pay isn’t equivalent to Europeans.

Why are new car sales dropping in India?

At present, the whole car industry is reeling under a drawn-out droop, influencing vehicle sales over all fragments. While the domestic log jam was the key drag on their financials, auto organizations additionally endured the worst part of the slowdown in the worldwide markets. The automakers are laying off staff and briefly stopping manufacturers to adjust their stock of products and to hold costs in line.

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