Too Many Cars? Maruti Shuts Production At Two Plants For a Day

This is the third consecutive month where Maruti Suzuki has taken a cut in production of cars.

A file photo of a Maruti Suzuki stockyard.

Photo: Reuters

The country’s largest car maker Maruti Suzuki India shut production for a day on 27 May at its plants in Gurgaon and Manesar in the national capital region to manage rising inventory levels, sources told PTI.

The company's installed manufacturing capacity at its two plants in Gurgaon and Manesar in Haryana stands at around 15.5 lakh units per annum.

According to the industry sources, the company gave employees at the two plants a day off on Monday as it faced issues regarding stocking of cars.

Basically, the parking lots where the cars are stored before being shipped out on trucks were full. When contacted over the issue, company officials declined to comment.

After facing a drop in sales for the past three months, Maruti had slashed its vehicle production by around 10 percent in April. It was the company's third consecutive month of taking a production cut.

It had also reduced production in February and March this year.

Overall passenger vehicle sales in India dropped over 17 percent in April, the worst monthly fall in nearly eight years, as subdued sentiment and the ongoing liquidity crunch impacted car sales.