Changing scenarios in the Indian automobile industry has bound the country’s largest automaker, Maruti Suzuki, to change its production schedule at its Manesar Plant in Haryana. The company has recently cut down its diesel engine production by sending its 200 contract workers on an indefinite leave. Maruti has taken the step to avoid over production of diesel models as the company is continuously registering a decline in its total sales. On the other hand, the decreasing margin between the prices of diesel and petrol fuel has also been affecting the sales of new diesel cars in the country.
Maruti Suzuki has a total annual capacity of around 3 lakh diesel engines at its Manesar plant where regular third working shift has being affected after the discontinuation of 200 workers. The company has registered a 12.6% decline in its total sales for the last month on an year on year basis while 43% decline in its total exports was accounted in the month of June this year. Maruti has also significantly lowered down its production for the Alto, WagonR, A-Star and SX4 in comparison to last year.
The other leading manufacturers in India like Toyota, Hyundai, Mahindra and Tata Motors have also been recording decline in sales since the last few months. The rising competition in thr Indian automobile industry and the launch of potent passenger vehicles like the Ford EcoSport with aggressive price tag have changed the preference of new car buyers in the country. Before last few months, Maruti Suzuki had been selling its diesel hatchbacks with a long booking period of almost six months, which was also slightly a marketing gimmick.
Currently Maruti Suzuki’s hot selling car, Swift and other models in diesel variants are instantly available across the company’s outlets in the country. Maruti Suzuki has been loosing grip in the segments where the company was dominating earlier. The company’s compact sedan, DZire has seen its sales get affected after the launch of the Honda Amaze and now the company is getting worried about the rising competition for Swift from Ford’s EcoSport. The Japanese automaker should launch their compact utility vehicle XA Alpha in the near future to rejuvenate the company’s presence and to boost sales in the new and emerging compact SUV segment.
