Maruti Suzuki cars to be cheaper? Company ‘adjusts’ production, reduces dealer stock ahead of Diwali

“We are currently adjusting production to reduce market stock and are closely monitoring demand trends. India will be in a critical period with the upcoming festival season; so we will closely monitor demand trends,” SMC told analysts in a conference call reported by Business Standard.

Maruti Suzuki’s production increased 7.4 per cent year-on-year to 496,000 units in the first quarter of 2024-25. During the same period, sales were up only 1.2 per cent ar 427,000 units.

Concerns have been raised over slowdown in car sales across the Indian auto industry which has resulted in dealer stockpiles reaching alarming levels. The Federation of Automobile Dealers Associations (Fada) has written two letters to the Society of Indian Automobile Manufacturers (Siam) in the past few months warning about the same.

As per Fada, its members have approximately 730,000 unsold vehicles which is enough to cover more than two months of sales. On the contrary, the Society of Indian Automobile Manufacturers estimates the number closer to 400,000 units.

SMC told analysts, “The Indian market is usually a bit slower in the first quarter than the rest of the year, but this year (demand) has been slower than expected, especially due to the (Lok Sabha) election and adverse weather, including heavy rain and heat waves. As inventories have increased, we are making adjustments…This year, the festival season starts in late August, a little earlier than the previous year, and the higher the demand, the volume for the whole period becomes bigger.”