It’s been 9 months; Maruti Suzuki India Ltd was constantly showing its production fall. But this festive season in October brought some good numbers in sale due to which the Delhi Based auto-maker built more vehicles in November than last year.
As per reports by BSE, Production in November rose by 4.33% year-on-year to 141,834 vehicles as compared to 135,946 units produced last year in the same month, making Maruti Suzuki India’s largest car maker.
The company had cut down its production by 20.70 percent at 119,337 units in October 2019 as compared to the same month last year at 150,497.
When the company under the month of review reduced the production on small cars Alto, S-Presso and old WagonR 39% to 20,985 units, the production of compact cars like New WagonR, Celerio, Ignis, Swift, Baleno, DZire production was cut down by 13.6% to 64,079 units. The production of midsize Sedan Ciaz drooped to 45% to 1,922 units in the same period.
There has been a decline in the production of vans Omni and Eeco by 45% to 7,661 units last month whereas the production of light commercial vehicles saw a drop at 10% to 1,954 units.
Production of utility vehicles like Vitara Brezza, XL6 and Ertiga saw an 18% increase year-on-year to 27,187 units in November whereas there has been increased production of hatchback cars like Wagon R, Celerio and Baleno by 18.82% year-on-year to 78,133 units.
The increase in demand of new products such as XL6 multipurpose vehicle has encouraged the company to increase production.
The Maruti-Suzuki has used a significant portion of its Bharat Stage (BS) –IV at its dealership and therefore started ramp up production as 80% of its product portfolio is compliant with the BS-VI emission norms.
Maruti has started offering more discounts on diesel vehicles which are attracting a significant number of customers to clear off the stock as it has announced will stop the production of diesel vehicles by April 1. 2020.
Several automakers will start offering hefty discounts to clear stocks of BS-IV vehicles as India will shift to more strict BS-VI emission norms from April.
All thanks to hefty discounts that the company offered during the festive time in October that the company saw its first increase in sales in 7 months. The production level has increased by 4.5% year-on-year growth in wholesales or industry dispatches in October to 144,277 units.
Although, Maruti’s wholesale domestic passenger vehicle sale increase by 2.3% to 139,121 units last month but the total volumes in seven months have declined by 23% to 802,643 units.
After the collapse of Infrastructure Leasing and Financial Services Ltd, sale of automobile in the domestic market has seen a sheer decline since the September quarter of 2018-19. This was due to the overall slowdown in consumption and liquidity crisis at financial institutions.
The parent Suzuki Motor Corporation has revised the growth projection earlier this week for the India subsidiary by a whopping 20%.