The slowdown in the Auto Industry has left most manufacturers with piled up stock yards which is why Maruti Suzuki will shut production on September 7 and 9.
The slowdown in the Auto Industry is hurting several automobile manufacturers quite severely. In a recent development, Maruti Suzuki has announced that they will shut production of passenger vehicles for two days at their Gurugram and Manesar plants, the dates being the September 7 and 9. Both days will be observed as ‘no production’ days by Maruti Suzuki.
Maruti Suzuki’s Gujarat plant will remain operational though. These is the first time when Maruti Suzuki has announced that they would shut production in this time of slowdown. However, they are not the only ones to have done so. Even Tata Motors have had to shut production for several days a couple of months ago because of low sales, as a result of which stocks were piling up.
Maruti Suzuki manufactures the S-Cross, the Ertiga, the Eeco, the Alto and the Super Carry at the Gurugram facility. Other models which include the Vitara Brezza, the Ciaz, the Celerio and the WagonR are manufactured at the company’s Manesar plant. Meanwhile, the Baleno and the Swift are manufactured at the Gujarat plant.
Maruti Suzuki sales report for August records a year-on-year decline by 34.4% in domestic sales, selling only 97,061 units as opposed to 147,700 units sold in August 2018. The segment that was most hit was the hatchback segment. The company’s cumulative sales including domestic and export sales stood at 106,413 units, recording a drop of 32.7% over 158,189 units sold in August last year.
Also Read : Hyundai Sales Report Depicts 16.58% Decline in Domestic Sales for August!
Maruti Suzuki had already reduced daily production by a significant amount because of the slowdown but now, the stocks had grown too large for them to continue production without a stop. Of course, this is just a temporary solution but if the situation of the auto industry does not improve, it is not unlikely that Maruti Suzuki or any other manufacturer for that matter will be compelled to shut production again.
Also Read : Honda Cars Sales Report Records 51.28% Decline For August
The government recently announced a number of measures to revive sales in the Auto Industry. The festive season will also be arriving very soon and customer buying sentiments are also expected to pick up gradually. Some OEMs are requesting the government to grant a temporary reduction in GST rates as well. Finally having taken some measures, we can expect the Auto Industry to start showing results in the coming months.
