InvestorQ : Why is Maruti planning to cut down its car production so aggressively?
Dilmini Mercia made post

Why is Maruti planning to cut down its car production so aggressively?

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Dawn Cherian answered.
1 month ago
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You are right because Maruti Suzuki has confirmed that it may look to virtually halve its production capacity. Most of its retail sales outlets had to close due to the surge in COVID so fulfilment becomes a big challenge and even demand has become weak. This was necessitated by the lockdown in most key states.

Maruti has said that it would operate at 50% to 60% of its capacity. Auto companies are facing demand crunch at this point as buyers are putting off car buy decisions. At the same time, there are supply side constraints too. Even players like Hero Moto, Mahindra & Mahindra and others plan to halt operations. Chip availability is another big challenge.

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