Maruti falls 2% on Haryana shutdown; 5000 units per day hit

Moneycontrol Bureau

Shares of Maruti Suzuki India fell over 2 percent intraday on Monday. The auto manufacturer is reeling under Jat reservation agitation in Haryana. "Due to agitation in Rohtak, supplies of certain components have been disrupted. The company has temporarily suspended manufacturing cars at Manesar and Gurgaon starting February 20," it said in a statement to BSE. It also said that Maruti is making efforts to arrange components from other sources. Once the supply of components is restored, nomral operations will resume. Maruti manufactures 5000 vehicles per day in Manesar and Gurgaon. This may spell more trouble for Maruti as its sales performance in January was not impressive at all. The country's largest car manufacturer sold 1.13 lakh vehicles in January, down 2.6 percent compared to 1.16 units sold in same period last year.

Maruti exported 7,223 vehicles in January, lower by a whopping 34.6 percent compared to 11,047 vehicles sold in year-ago period while domestic sales increased 0.8 percent to 1.06 lakh vehicles in same period. Ciaz, which comes under mid-size car segment, sales also slipped 9.6 percent followed by 4.3 percent decline in mini car segment.

The company had said that domestic sales would have been higher, but lesser number of working days in January 2016 impacted overall production and dispatch.