Maruti Suzuki (Photo Credit: Twitter)
As the Indian auto sector faces the worst slump in decades, Maruti Suzuki India announced the shutdown of its two plants located in Gurugram and Manesar on Wednesday. The company said that these two days will be known as ‘no-production days’. The production of vehicles in Maruti Suzuki’s Gurugram and Manesar plants will remain shut on September 7 and September 9, 2019.
According to a statement of Maruti Suzuki India to stock exchanges, the country’s largest carmaker said that it has decided to shut down the passenger vehicle manufacturing operations of Gurugram Plant and Manesar Plant in Haryana for two days, on 7th and 9th September, 2019. “Both days will be observed as no production days,” it added.
Due to the slump in India’s auto sector, Maruti Suzuki had cut its production by 33.99% in August. It is worth mentioning here that this was the seventh straight month when Maruti Suzuki reduced its output. According to the livemint, Maruti Suzuki shares were trading 2.5 per cent lower at Rs 5,900 in noon trade.
On Monday, in a filing to the BSE, Maruti Suzuki India said that the company produced a total of 1,11,370 units in August as compared to the 1,68,725 units in the year-ago month.
Earlier on Sunday, Maruti Suzuki India reported a 33 per cent drop in August sales at 1,06,413 units. The company had sold 1,58,189 units in August last year. Also, domestic sales of Maruti Suzuki India declined by 34.3 per cent at 97,061 units last month as against 1,47,700 units in August 2018.
On the other hand, sales of mini cars comprising Alto and WagonR stood at 10,123 units as compared to 35,895 units in the same month last year, down 71.8 per cent. Sales of compact segment such as Swift, Celerio, Ignis, Baleno and Dzire went down to 23.9 per cent at 54,274 units as against 71,364 cars in August, 2018. Whereas, Maruti Suzuki’s mid-sized sedan Ciaz sold 1,596 units as compared to 7,002 units earlier.
In a statement MSI said, “Sales of utility vehicles including Vitara Brezza, S-Cross and Ertiga, rose 3.1% at 18,522 units as compared to 17,971 in the year-ago month.” “Exports in August were also down by 10.8% at 9,352 units as against 10,489 units in the corresponding month last year,” the company added.