After the major hike in the prices of petrol in India, the country’s largest car maker Maruti Suzuki has cut the production of some of the petrol models. The production of models like Alto and the cars, whose sales has declined due to high fuel costs have been cut.
Mayank Pareek, the Managing Executive Officer, of marketing and sales at Maruti Suzuki said “Petrol car sales are very low in these days as the market sentiment is down … We do not believe in creating excess stock. So, we adjust our production accordingly”. Even in recent times the company stopped the production of the models like Alto, M800, A-Star, Estilo and Omni for three days so as to prevent the inventories from piling up further.
Pareek added, “Normally we have inventories for three weeks. However, for petrol models, it is now around four and a half weeks”. Some of the unofficial reports say that Maruti Suzuki has stopped the production of the petrol models on May 25-26 and June 2 at its facility of Gurgaon.
Last month the country witnessed the steepest increase in the prices of petrol with Rs. 7.54 litre per. But due to the public outcry, a partial rollback was done by cutting the prices by Rs. 2.02 per litre this month.