Maruti Suzuki India Ltd shares dropped as much as 3.8% in intra-day trade on Wednesday, i.e. 4 September, after the company announced two of its plants will remain shut for production on 7 September and 9 September 2019.
At 1:32 pm, shares of Maruti Suzuki were trading at Rs 5,891.35 apiece, down 2.6%, after hitting an intra-day low of Rs 5,820.70. The stock has corrected nearly 32% in the past one year.
In a notification to stock exchanges, Maruti Suzuki said it has decided to shut down the passenger vehicle manufacturing operations of Gurugram and Manesar plants in Haryana for two days, on 7 and 9 September 2019 and both days will be observed as no-production days.
Maruti Suzuki India had earlier said that it has reduced its production by 34% in August, marking the seventh straight month of decline in output. Maruti produced a total of 111,370 units in August compared with 168,725 units a year ago.
Meanwhile, the car maker reported a 33% decline in total sales at 106,413 units in August compared with 158,189 units in the year-ago period. The biggest decline was reported by the hatchback segment, with sales of mini cars comprising Alto and WagonR falling nearly 72% to 10,123 units compared with 35,895 units in the same month last year.
The Indian auto industry is reeling under tremendous pressure due to demand slowdown. All major auto companies have reported steep decline in monthly sales of passenger cars. Cumulatively, domestic passenger vehicle sales dropped 30.9% year-on-year to 195,558 units in August, falling for the tenth consecutive month.
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Source: News18