Maruti Suzuki might increase production for next two months

Maruti Suzuki may raise their production capacity in April and May in a bid to prosper in the wake of the excise duty reduction. The demand for cars may increase with the reduction in prices, making manufacturers eventually ramp up production.

According to reports, the company has increased the output guidance to key component suppliers for April and May. Though the plans have not changed for this month, in the coming months, the company’s plants in Haryana will see an eight per cent hike for one plant and 12 per cent for the other. As a result the numbers have increased from one lakh to 1.08 lakh units and 1.04 lakh to 1.17 lakh units respectively.

This production guidance is higher than the one given prior to the interim budget that was announced in February. However, Maruti Suzuki will not further increase the monthly production capacity for June considering the excise duty cut to be valid till the end of June.

Most of the automakers are planning to make the most of the current lower excise duty rates which enabled them to lower their product rates. As a result, the companies are expecting their sales to get a fair if not, at least a meager push. While Maruti is increasing production, rumours are that companies like Mahindra, Honda and Tata are contemplating a price hike owing to manufacturing costs. It remains to be seen whether Maruti follows suit.

Source: The Financial Express