Maruti Suzuki India has been in a slowdown for a long time and has now lowered production by 17.48% in September. This is the eighth consecutive month in which the company has reduced its output.
The company produced a total of 1,32,199 units in September as against 1,60,219 units in September, last year, Maruti Suzuki India (MSI) said in a regulatory filing. Passenger vehicles' production last month stood at 1,30,264 units as against 1,57,659 units in September 2018, a decline of 17.37 per cent, it added.
Production of mini and compact segment cars, including Alto, New WagonR, Celerio, Ignis, Swift, Baleno and Dzire stood at 98,337 units as against 1,15,576 units in September last year. The production is down 14.91 per cent.
Similarly, production of utility vehicles such as Vitara Brezza, Ertiga and S-Cross declined 17.05 per cent to 18,435 units as compared with 22,226 units a year ago. Mid-sized sedan Ciaz saw its production reduced to 2,350 units in September from 4,739 units in the same month last year.
Light commercial vehicle Super Carry's production was also trimmed to 1,935 units last month from 2,560 units in September 2018, the filing said. In August, the automaker had cut its production by 33.99 per cent at 1,11,370 units.
Tata Motors also reported a 63 per cent drop in production of passenger vehicles in September at 6,976 units as compared to 18,855 units in the same period last year.
All the major automobile makers, including MSI, Hyundai, Mahindra & Mahindra, Tata Motors, Toyota and Honda, have reported double digit decline in domestic passenger vehicle sales in September as onset of the festive season failed to lift the ongoing slump in the auto industry.
The auto industry has been going through a prolonged slump. Total vehicle sales in India witnessed the steepest fall in August since industry body SIAM started recording wholesale vehicle sales data in 1997-98. Overall vehicle sales in the month stood at 18,21,490 units as against 23,82,436 units in August 2018, a fall of 23.55 per cent.
The beginning of the festive time of year in September could not increase the sales of passenger vehicle (PV) with major automobile makers, including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, Toyota and Honda, reporting double-digit declines in their respective PV sales.
“The Indian auto industry is facing a big structural issue with affordability becoming one of the most serious challenges due to several factors, including headwinds created by government policies,” Toyota Kirloskar Motor Vice-Chairman Vikram Kirloskar had said.