Maruti mulls production cut
New Delhi December 25:
India's largest car maker, Maruti Suzuki, said it may consider a production cut, if the market does not improve, as it expects the sales growth to remain flat in the current financial year.
"I hope not, but if we are obliged, then we will do it," Maruti Suzuki India Managing Director Shinzo Nakanishi told reporters here when asked if the company would go for a production cut. Across the world, including China, India and other BRIC countries, there has been a slowdown in demand which has made the company to respond appropriately, he said.
The company had already cut production in November by 6.29 per cent at 63,431 units against 67,690 units in the same month last year. Nakanishi said the company's focus is on not letting inventories pile up, specially at the dealers end. "We are focusing on the network stock. If the network stock is overflow, then we will have to readjust our productions," he said.
Asked if the quantum of the cut would be the same in December, Nakanishi said: "I don't think so. I hope it will be less than that (of November)." He said the company will produce a "few per cent" less in December compared with the same month last year. In November, the company's passenger car sales dipped by 24.84 per cent at 43,258 units against 57,554 units in the same month last year.
Commenting on the company's sales growth prospects this fiscal, MSI Chairman R C Bhargava said: "Compared to last year, I doubt there will be growth