Maruti responds to slowing sales by lowering production

Production and delivery to dealers has been reduced in order to clear the higher than normal inventory at Maruti’s Arena and Nexa dealerships.

Published on Aug 24, 2024 08:00:00 AM

22,191 Views

Listen to this Article

Your browser doesn’t support HTML5 audio
Maruti Suzuki is adjusting production to reduce market stock and is closely monitoring demand trends, the management of its parent company, Suzuki Motor Corp, told investors. The comments came as the Federation of Automobile Dealers Associations (FADA) has raised concerns over a pile-up of unsold cars at dealerships and called on automakers to rationalise production.
  1. Despatches to dealers fall 10 percent YoY in July on weak demand
  2. Average discounts in April-June rise to Rs 21,700 from Rs 14,500 in the previous quarter
  3. Maruti dealerships had an inventory of 37 days as of June-end

During July, Maruti Suzuki’s domestic passenger vehicle despatches to dealerships fell around 10 percent year on year, and volumes in the April to July period declined 2 percent from a year ago. The company noted that the demand has been weaker than expected this year.

Suzuki Motor Corp’s management stated that inventory adjustments are needed in India even though retail sales have improved slightly in July compared to the level in April-June and risen about 3 percent year on year in April-July.

So, the company, which raised the output in the first two months of the fiscal ending March 2025 over the year-ago period, started squeezing it from June, its monthly production data shows.

The pile-up of unsold cars at dealerships has also resulted in higher discounts. Maruti Suzuki provided an average discount of Rs 21,700 per vehicle during the April-June period, up from Rs 14,500 in January-March.

Recently, Maruti Suzuki’s executive director for Corporate Affairs, Rahul Bharti, said inventory levels, though slightly higher than optimal, are manageable. He noted that 30 days of inventory is considered normal, and the company had an inventory of 37 days at the end of June.

Also see:

Maruti eVX global debut confirmed for January 2025

Suzuki confirms development of own strong hybrid powertrain for future models

Maruti Alto K10, Spresso now get ESP as standard

Maruti Suzuki Cars

Upcoming

Maruti Suzuki New Dzire

Expected Price : ₹ 7.50 - 10.50 lakh

Upcoming

Maruti Suzuki eVX

Expected Price : ₹ 18.00 - 20.00 lakh

Maruti Suzuki Fronx

₹ 8.53 - 15.02 lakh

Maruti Suzuki Grand Vitara

₹ 12.84 - 23.17 lakh

Maruti Suzuki Ignis

₹ 6.49 - 9.14 lakh

Maruti Suzuki Invicto

₹ 29.27 - 33.55 lakh

Maruti Suzuki Jimny

₹ 14.87 - 17.23 lakh

Maruti Suzuki S-Presso

₹ 4.78 - 6.30 lakh

Maruti Suzuki Swift

₹ 7.39 - 10.74 lakh

Maruti Suzuki Wagon R

₹ 6.17 - 7.65 lakh

Maruti Suzuki XL6

₹ 13.56 - 17.03 lakh

Maruti Suzuki Alto K 10

₹ 4.48 - 6.44 lakh

Maruti Suzuki Baleno

₹ 7.58 - 11.11 lakh

Maruti Suzuki Brezza

₹ 9.45 - 16.30 lakh

Maruti Suzuki Celerio

₹ 5.97 - 8.01 lakh

Maruti Suzuki Ciaz

₹ 10.63 - 14.35 lakh

Maruti Suzuki Dzire

₹ 7.47 - 10.56 lakh

Maruti Suzuki Eeco

₹ 5.92 - 7.49 lakh

Maruti Suzuki Ertiga

₹ 9.84 - 15.20 lakh

Copyright (c) Autocar Professional. All rights reserved.

Advertising
Advertising
NEXT STORY
Copyright © 2024 Autocar India. All Rights Reserved.