Maruti Suzuki Shuts Gurugram And Manesar Plants For One Day

Maruti Suzuki India (MSI), the country's largest car maker, shut down production at its Gurugram and Manesar facilities on Monday. The shut down was called for in order to manage rising inventory levels, and lasted one day. The company's manufacturing capacity at its two plants in Gurgaon and Manesar in Haryana stands at around 15.5 lakh units per annum.

According to the Economic Times Auto, the company gave employees at both plants a day off on Monday as it faced issues regarding stocking of cars. When contacted and asked about the issue, company officials declined to comment.

Maruti Suzuki India had reduced vehicle production by close to 10 per cent in April. It was the company's third consecutive month of taking a production loss. Production numbers were also reduced during February and March 2019.

Maruti was in the news earlier as the company stated they would not be manufacturing any diesel vehicles after the BS-VI emission laws are enforced in April 2020. The company feels that the costs for upgrading diesel engines from BS-IV to BS-VI compliance are not justified.

MSI plans to push petrol and CNG variants by offering incentives for the variants. They also plan to launch CNG variants for more cars on the portfolio. Diesel engine variants account for 23 per cent of all of Maruti Suzuki's sales and the company did say that they would re-introduce diesel engines of the demand for it persists.

Overall, passenger vehicle sales in India dropped over 17 per cent in April making it the worst monthly fall in nearly eight years.

Thoughts About The Maruti Suzuki Shut Down That Lasted One Day

The industry is witnessing a rather lean period. Sales are quite low across the industry. We are amazed that Maruti had to shut down two production facilities to cope with rising inventory levels. Low sales means a reduction in production, and that leads to higher inventory levels. The industry believes they are about three or four months away from recovery. Maruti must have their fingers crossed.

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Read more on: #maruti suzuki
Article Published On: Thursday, May 30, 2019, 11:55 [IST]
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