Maruti Suzuki India Limited, the country's largest passenger car maker, has been witnessing declining demand for its several models, across different segments. Following this, the car maker has reduced its daily production by almost 25 per cent at its Gurgaon and Manesar facilities in Haryana. Also, the auto maker has cut the production of its diesel engines by almost one third. Sources close to the development process said that Maruti Suzuki has shut the manufacturing of its iconic Swift hatchback and DZire sedan models at Gurgaon during June 2013.
Speaking on this matter, a spokesperson of the company was quoted as saying, “The diesel plant was operating at full capacity, but with the slowdown in demand, some adjustment has been made. The workers who have been asked to go on leave are temporary employees.”
Along with the reduction in production process and suspension of third assembly line at engine plant, the auto maker has also asked around 200 temporary workers of its Manesar diesel engine facility to go on an indefinite leave. As of now, the leading passenger car maker of India is rolling out around 2,466 cars each day from the earlier 3,300 units a year before. Reportedly, the company has an yearly diesel engine production capacity of 3 lakh units at its Manesar plant, while it gets the other 1 lakh units from Fiat under a joint agreement.
Besides diesel engine plant, Maruti Suzuki also has a petrol production unit with an annual capacity of 13 lakh units at Gurgaon. It must be noted that more than 40 per cent of the plant's capacity has been left under-utilised from last two years, owing to a fall in the demand for petrol cars. And now with a hit in the demand for diesel cars as well, the auto maker has cut the production of diesel engine as well. Interestingly, the move to reduce diesel engine production comes at a time when the auto major was planning to commence operations at its new 1.5 lakh units diesel engine plant in Gurgaon by the end of 2013.
When working on full potential, the total diesel engine production of Maruti Suzuki will reach to 6 lakh units each year. The decision to reduce the production of both diesel engines and cars has been followed by large pile ups of inventory since January, which has forced the auto maker to shut both its Gurgaon and Manesar facilities for almost 2 to 3 days every month.
