Maruti Suzuki Slashes Prices? Pre-Diwali Production Cut Hints at Savings

Maruti Suzuki India Ltd (MSIL) is slowing down its car production because fewer people are buying cars than expected in the first quarter of 2024-25. This is leading to a lot of unsold cars at dealerships.

Suzuki Motor Corporation (SMC), which owns most of Maruti Suzuki, said they are making fewer cars to help reduce the number of unsold cars. They are also keeping a close eye on how many cars people are buying. This is important because the festival season is coming up, which is usually a busy time for car sales in India.

Even though Maruti Suzuki made 7.4% more cars compared to last year, sales only went up by 1.2%. This slow growth in car sales has caused concern in the Indian auto industry. Many unsold cars are piling up at dealerships, with some estimates saying there are enough unsold cars to last over two months.

SMC mentioned that car sales are usually slower in the first part of the year, but this year was even slower due to the upcoming elections and bad weather. They are adjusting their production accordingly and hope that the festival season, which starts earlier this year, will increase demand for cars.