Yesterday, after market hours, Maruti Suzuki had some more disturbing news – for the sixth consecutive month, for July, the company announced that it cut production by 25.15%.
In the Mini section, which comprises of Old Wagon R and Alto, production was down 59%. In ‘Compact’ segment, which includes New WagonR, Celerio, Ignis, Swift, Baleno, OEM Model, Dzire, production was down 9.5%. Thus the total production in these two was down 25%.
Production of Ciaz was down 51%; in utility vehicles, Gypsy, Vitara Brezza, Ertiga, S-Cross showed a 21% drop while vans, comprising of Eeco, Omni, showed a 25.5% drop.
The stock price opened 1% lower at Rs.5730 and went down to an intraday low at Rs.5725; because this has been quite a regular feature and happening across all companies in the auto sector, the market has not panicked, merely reacted as expected.