NEW DELHI: Low consumer sentiment continued to subdue auto sales performance in the country with ongoing festive season has almost no positive impact on the demand. As a result, auto firms are going ahead with production cuts across their manufacturing facilities in India.
Maruti Suzuki India Ltd (MSIL) continued reducing its production with 17.48 per cent cut in September, making it the eighth straight month when the largest carmaker has lowered its output. The company produced a total of 1,32,199 units last month against 1,60,219 units in the year-ago month, while its total sales in the same month fell 24.4 per cent to 122,640 units. Maruti
Suzuki’s passenger vehicles production last month fell 17.37 per cent to 1,30,264 units as against 1,57,659 units in September last year.
The decline in total production comes even as the carmaker launched two new models —XL 6 and hatchback S-Presso to boost sales. However, MSIL has managed to improve its output on month-on-month basis in September compared to August when the automaker had cut its production by 33.99 per cent at 1,11,370 units.
Besides Maruti Suzuki, other auto companies are also struggling due to reduced demand and are adjusting their inventory level with dealer showrooms. A liquidity crunch arising out of a shadow banking crisis with other regulatory factors have made vehicle ownership expensive on top of the general slowdown in economic activity that has led to a prolonged slowdown in the sector, according to analysts. It is widely reported that due to non-production days, a large portion of contractual labours have become unemployed.
Commercial vehicle (CV) maker Ashok Leyland, which reported 57 per cent drop in September sales, continues to go ahead with production cuts across its factories.
CV segment also cuts production
India’s second largest commercial vehicle (CV) maker Ashok Leyland, which reported 57 per cent slump in September sales, continues to go ahead with production cuts across its factories. It had announced cutting down productions in its plants by as many as 15 days