1. Production at Maruti plants remains suspended

Production at Maruti plants remains suspended

Ops likely to remain stalled till the first half of Tuesday; this would mean a production loss of 7,500 units

By: | New Delhi | Published: February 23, 2016 1:07 AM

Production at the two manufacturing plants of Maruti Suzuki continued to be suspended on Monday and will remain suspended till the first half of Tuesday. This would mean an additional production loss of close to 7,500 units for the largest car-maker in the country. The Gurgaon and Manesar plants have a combined capacity of rolling out 5,000 cars in a day and the company lost one production shift on Saturday last week as well.

“We will reassess the situation on Tuesday morning,” a company spokesperson said, adding that the production will remain suspended till the first half of February 23. Shares of Maruti Suzuki closed 1.61% lower at Rs 3523.30 on the BSE and saw an intra-day low of Rs 3495.15.

Maruti had on Saturday informed about the suspension of production at the plants as supply of components was disrupted due to protests across Haryana on the demands of reservations for the Jat community.

“Owing to the agitation in Rohtak and nearby areas, supplies of certain components have been disrupted. As a consequence, the company has had to temporarily suspend manufacturing of cars at its facilities in Manesar and Gurgaon starting Saturday (February 20) second half,” the company had said in a statement.

“The company is making efforts to arrange the components from other sources. Once the supply of components is restored, normal operations will resume,” the company said.

Lower number of working days had a significant impact on Maruti’s domestic sales in January, as it reported a growth of less than 1%, citing lower number of production days compared to other months.

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