Maruti Suzuki, the market leader in passenger cars, slashed production by 34 percent in the month of August, its seventh consecutive month of production cut. Shashank Srivastava, executive director- marketing & sales at Maruti Suzuki India, spoke to CNBC-TV18 about the company's business.
“We were doing aggressive production cuts, which is the reflection of retail and it is a continuous exercise done even in normal situations. Depending on retails, it is a prudent practice to adjust for inventory both in-network as well as the factory,” Srivastava said on the sidelines of the Siam Convention.
When asked if the company was expecting any GST cuts, he said, "They (government) have many factors to consider when they have to decide anything relating to GST and so the company would not like to speculate on what the government will or will not do."
Talking about heavy discounts offered by the company on its products, Srivastava said, the heavy discounts and promotions was a reflection of their efforts to try and push retail since the inventory levels were high both at the network as well as factory.
"As far as diesel vehicles are concerned there is an extra five-year warranty which the company is offering because consumers are confused whether BS-IV diesel will have a future or not and what would happen to these vehicles. So, this will give confidence to consumer," said Srivastava.