Maruti Suzuki, the largest auto sector company, is having difficulties. Actually, Maruti Suzuki has drastically reduced production by 25.15 percent in July. This is the sixth consecutive month when the company has reduced production. Here, let me tell you that Maruti Suzuki had laid off 1,000 temporary employees, citing the recent production cut. Apart from this, new recruitment have also been stopped.
Maruti Suzuki told the Bombay Stock Exchange that it has produced 1,33,625 vehicles in July 2019. A year ago in the same month, the company produced 1,78,533 units. According to the company, 1,30,541 passenger vehicles were produced last month. In July 2018, the figure stood at 1,75,456 units.
Similarly, in July 2019, production of small and compact category vehicles including Alto, WagonR, Celerio, Ignis, Swift, Baleno, Dzire decreased by 25 per cent to 95,733 vehicles. Production of utility vehicles like Gypsy, Vitara Brezza, Ertiga and S-Cross declined by 21.26 per cent to 19,464 units. In July 2019, production of sedan Ciaz decreased from 7,115 units to 3,497 units. At the same time, production of light commercial vehicle Super Carry has also come down to 2,724 vehicles.
Nearly 34 Percent Drop in Sales
Let us know that in July, a big decline of about 34 percent has been recorded in Maruti Suzuki sales. In July, Maruti Suzuki's domestic sales fell 36.30 per cent to 98,210 units as compared to last year's 1,54,150 vehicles. Earlier, Maruti Suzuki had sold 1,64,369 units in July last year. In July, Maruti Suzuki's mini cars are not much liked by the people. According to the company, sales of mini cars including Alto and WagonR fell by 69.30 percent to 11,577 units in July from 37,710 units last year.
The impact of this crisis of Maruti Suzuki has started showing on the company. Recently, the company has laid off 1,000 temporary employees and plans to stop the new recruits. Apart from this, the company is planning cost cutting measures to deal with the current recession. Let us know that the company's profit in the first quarter of the current financial year 2019-20 has been 27.3 percent less than the previous year.
