Maruti Suzuki stops the production of diesel engines for indefinite time

Maruti Suzuki stops the production of diesel engines for indefinite time New Maruti Suzuki
author image CarTrade Editorial Team
Tuesday 09 July 2013, 11:44 AM

Maruti Suzuki India Limited, the country's largest passenger car maker, has asked its 200 contract workers to go on leave for indefinite time, because of reduction in the production of diesel engines at its Manesar plant owing to low demand. Sources close to the development process revealed that the auto maker has stopped the third shift at its diesel engine unit, which has an yearly production potential of around 3,00,000 units.

Maruti Suzuki stops the production of diesel engines for indefinite time

On this, a company spokesperson said, “The diesel plant was operating at full capacity. With the continued slowdown in demand, some adjustments have been made at the diesel plant.”

Following an increase in the diesel prices, the demand for such models have significantly reduced in the country. Maruti Suzuki has registered a fall of 12.6 per cent in its total sales during June 2013, amounting to 84,455 units. During the period, the domestic sales of the company reduced by 7.8 per cent at 77,002 units. The exports of Maruti Suzuki stood at 7,453 units, marking a fall of 43 per cent as against 13,066 units shipped in the corresponding period of last year.

In order to adjust the production as per demand, in June 2013, the auto maker stopped working at its two plants in Manesar and Gurgaon for a day, which was then followed by 6-day maintenance closure during the period. It must be noted that Maruti Suzuki has been striving hard to turn the tides in its favour after the violent riot that took place at its Manesar plant. The cumulative sales figure of the Indian auto market states that the industry has been reporting a record fall for the 8th month in a row with big players like Maruti Suzuki, Tata Motors, Toyota and General Motors being a member of the league.

The sales of Indian auto market in May 2013 reported a dip of 12.26 per cent for the 7th month in row at 1,43,216 units over 1,63,222 units delivered in the year-ago period. Following this, Maruti Suzuki has stopped the production of its several models in June 2013 by almost 25 per cent, amounting to 61,668 units under the review of 82,626 units sold in the corresponding period of last year.

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