Maruti Suzuki To Reduce Car Price Soon! Here's The REASON
Date
8/22/2024 7:00:25 AM
(MENAFN- AsiaNet News) Prices of cars from India's largest auto company, Maruti Suzuki India Limited, may decline. In the first quarter of this financial year, car sales increased by 1.2%, along with a 7.4% increase in production. During this period, the company manufactured 494,000 vehicles. However, in the second quarter, the company sold 427,000 vehicles. The company states that there has been a decrease in demand for cars.
Company Adjusting Production
According to media reports, Suzuki Motor Corporation, the majority shareholder of the company, said that the company is adjusting its production to reduce market stock. Now, trends will be monitored keeping in mind the festivals. Due to the decrease in demand, the inventory of dealers has increased significantly. The Federation of Automobile Dealers Association (FADA) has mentioned an increase in inventory with dealers.
Inventory Equal to Two Months of Sales
According to FADA, dealers have an inventory of approximately 730,000 vehicles, which is equal to two months of sales. However, the Society of Indian Automobile Association (SIAM) says that this number is close to 400,000. Suzuki Motor officials say that demand was low in the Indian market during the first quarter. Now, this demand has decreased even further. The company is now making adjustments due to the increase in inventory. This year the festive season may start early. In such a situation, the sales of the company's vehicles may increase.
Maruti Suzuki India Ltd (MSIL) has reportedly said it is planning to ease inventories with dealers ahead of Diwali this year. Maruti attributed its decision to 'slower than expected' demand for passenger vehicles in the first quarter of the ongoing financial year.
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