NEW DELHI: Maruti Suzuki India Ltd, the country’s largest carmaker on Wednesday, reported a 53.8% year-on-year decline in domestic passenger vehicle sales to 51,274 units in June due to covid-19 related disruptions.
Maruti’s exports also dropped 56.4% y-o-y to 4289 units during the month.
Volumes in the hatchback segment declined 54.5% y-o-y to 37154 units while the same for utility vehicles dropped 9764 units. In May, the company witnessed sales of just 13,865 units after restarting production at its Manesar-based factory from May 12.
Vehicle manufacturers like Maruti had to close their factories and showrooms from March 22, following the lockdown announced by the union and state governments to contain the spread of the covid-19 pandemic. The company though was working with its suppliers and dealers in the meantime to create standard operating procedures (SOPs).
Mint, on May 8, reported that Maruti Suzuki plans to increase monthly car production to more than one lakh vehicles from July on hopes that sales of affordable, entry-level hatchbacks will rebound amid a revival in demand in semi-urban and rural markets. The New Delhi-based car maker is also likely to increase manufacturing of compact vehicles like Alto, Wagon R and Celerio.
Maruti has been utilizing around 30-40% of its installed production capacity as safety measures taken at the plant have made the manufacturing process cumbersome. Also, lack of demand in the market and high vehicle stocks at dealerships has propelled the company to limit vehicle production.
Despite witnessing decent recovery in retail sales, auto makers like Maruti Suzuki, Hero MotoCorp Ltd and other are struggling to ramp up manufacturing due to disruption in supply chain network. The prevailing lockdown in Chennai and increased inspection of imported parts from China are also likely to cause major problems for auto makers and their suppliers.