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Auto Slowdown: Maruti Suzuki cut production by 34% in August

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Market leader in passenger cars Maruti Suzuki slashed production by 34 percent in the month of August. The company produced 111,370 vehicles in August' 19 compared to 168, 725 vehicles in August '18. The company made the disclosure in a regulatory filing.

Auto Slowdown: Maruti Suzuki cut production by 34% in August
Market leader in passenger cars Maruti Suzuki slashed production by 34 percent in the month of August. The company produced 111,370 vehicles in August' 19 compared to 168, 725 vehicles in August '18. The company made the disclosure in a regulatory filing.
This would be the seventh consecutive month of production cuts at Maruti Suzuki. The cuts are aimed at reducing inventory at a time when dealerships are under stress.
Shashank Srivastava, Maruti's Executive Director for Marketing and Sales, had told CNBC TV18 on July 16 this year that the company would be launching extensive promotional campaigns in the festive season. "Maruti Suzuki is giving a lot of support in terms of very extensive consumer promo schemes because the stock levels are on the higher side. Rather than focusing on pushing vehicles into the dealer stock, it is how quickly you can liquidate the stock and that is what we are trying to do. So our focus is entirely on retails," he had said.
Piled up inventory has left dealers and OEMs worried. Dealers would not be able to sell BSIV stock after April 1, 2020 when BSVI norms come into effect. In an aggressive bid to clear stocks Maruti is offering discounts ranging from Rs 65,000 on Alto to Rs 1 lakh on the Brezza diesel model. Similarly discounts of Rs 77,700 and Rs 84,100 are being offered on Swift Diesel and Dzire diesel models. MSIL has decided to discontinue production of diesel vehicles after BSVI norms come into effect as price of diesel cars will go up substantially.
The company is also offering five-year extended warranty on all diesel models. It has said that it will continue making petrol versions of Brezza and Ertiga.
Senior executives of Maruti Suzuki had recently said that the company's dealers had stock for 35 days on an average.