After Toyota, Mahindra and Tata Motors, now Maruti Suzuki India Ltd. has decided to cut down its production in India. India’s largest car manufacturer launched its most awaited model, Maruti A-Star in India on Wednesday. However, it expects a decrease in the demand of its cars in the next few months. Thus, it has decided to slow down the production at its manufacturing units. Although the overall production will be 4.5 percent more than the last year, it will be lower than the initial target of 10 percent increase.
“We made some re-adjustments in production. There is a demand slowdown,” said Mayank Pareek, the company's executive officer in charge of marketing. However, he declined to elaborate on the ‘adjustments’. The company produced 757,092 cars, vans and utility vehicles in the year ended March 31.
The auto industry has been facing difficult times in India since past few months. Rising job insecurities, high interest rates and escalating raw material prices have led to a historic slump in the demand. In India, nearly 85 percent cars are bought on credit where auto loans play a major role.