Maruti Suzuki India (MSI), the country's largest automobile manufacturer, has cut vehicle production for the fifth consecutive month this year, according to a regulatory filing. The Indo-Japanese car maker slashed its vehicle production, including that of the Super Carry LCV, in the month of June, by 15.6 per cent to 1,11,917 units. In comparison to the same month last year, Maruti Suzuki produced a total of 1,32,616 units. Last month, the total passenger vehicle production for the company stood at 1,09,641 units, in comparison to 1,31,068 units during the month of June last year. This accumulates to a 16.34 per cent decline.
Maruti Suzuki's largest selling vehicle, the entry-level hatchback Alto's production was cut by 48.2 per cent to 15,087 units in the month of June this year. In comparison to the same month last year, a total of 29,131 units of this car was produced. The production of its compact segment cars like the WagonR, Swift and Dzire were slashed by 1.46 per cent to 66,436 units last month in comparison to 67,426 units in June last year. Talking about the utility vehicles, the same witnessed a decline of 5.26 per cent with 17,074 units produced during June this year in comparison to 18,023 units produced during the same month last year.
The company said production of vans declined by 27.87 per cent to 8,501 units last month compared to 11,787 units in June 2018. The car market leader had cut total production by over 18 per cent in May. Similarly, it had slashed production by around 10 per cent across its factories in April. In March, the company had reported a production cut of 20.9 per cent, while in February the company had reduced production by over 8 per cent to 1,48,959 units from 1,62,524 units produced in the year-ago month. Auto manufacturers have been facing muted sales for quite some time now. The slowdown has forced companies to adjust their production schedules to market demand.
Automakers like Mahindra & Mahindra (M&M) and Tata Motors have also announced adjusting production to tapering market demand to cut down inventories. In May, overall passenger vehicle wholesales in India witnessed the steepest decline in nearly 18 years, dropping by over 20 per cent amid continued weakness in retail offtake. The decline in May was the worst since September 2001, when sales had dropped by 21.91 per cent. In fact, barring October last year, when sales went up 1.55 per cent, passenger vehicle offtake has been in the negative zone in 10 of the last 11 months. Passenger vehicle retail sales were, however, comparatively better in May. As per automobile dealers' body FADA, retail sales in May dipped 1 per cent to 2,51,049 units as compared to the same period last year. Both SIAM and FADA are yet to release detailed sales data for June.