Maruti Suzuki shares fell more than 4 percent intraday and the stock was the biggest loser among Nifty50 counters on Monday after a media report indicated that the slow demand prompted the company to cut its production in March.
The stock was quoting at Rs 6,815.00, down Rs 277.05, or 3.91 percent on the BSE, at 10:56 hours IST.
"A slowing demand in India's passenger vehicle market has prompted the car market leader, Maruti Suzuki India, to cut production by a quarter over March last year," Business Standard said quoting people aware of the company's plans.
Maruti is estimated to have cut production to around 1,26,000 units as compared to more than 1,72,000 units a year ago, which is a 26.8 percent reduction, the report added. Hence, production in March 2019 is expected to be lowest since March 2015.
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Demand uncertainties and switch to stricter emission norms leads to slowdown, the report said.
Production cut comes amidst falling sales in current financial year when domestic sales grew only 6.2 percent YoY.
In February, Maruti's overall volumes grew by 1 percent YoY to 1,48,682 units with domestic sales rising a percent and exports falling 20 percent YoY.
Entry and compact segment volumes declined by 2 percent YoY. Ciaz volumes declined by 37 percent YoY, SUV volumes were up 7 percent YoY led possibly by the launch of new Ertiga and vans segment volumes grew by 17 percent YoY. First Published on Mar 18, 2019 12:16 pm
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