Market leader Maruti Suzuki has decided to operate just one shift at all its manufacturing facilities, in view of the slowdown in the auto industry stemming from lower demand for vehicles.
Economic Times reported that the car maker is planning to reduce production even at its Manesar plant. This will be in addition to the Gujarat and Gurugram plants that are already operating at below capacity.
The report said Maruti had not responded to its questions about the impact on sales and volumes, and the realignment of production schedules.
The Manesar plant is responsible for a 750,000-unit production line for Maruti's Baleno, Ertiga, Swift, Dzire and WagonR cars. Production cuts meant hundreds of job losses, and only one operable shift throughout all plants put more jobs at risk, the article said.
Passenger car sales in the country have been witnessing a continuous downturn, with numbers reaching multi-decade lows. This has resulted in inventory bloating across all dealerships at a time when the festival season, during which the sales peak, is just around the corner.
The article said Maruti Suzuki has been shutting down plants periodically to rationalise production, with three shutdowns planned in August alone. The company has reduced production by 10 per cent so far in FY20, it said.
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