Maruti to halt production at Haryana plants for 2 days

Cars are seen parked at Maruti Suzuki's plant at Manesar, in the northern state of Haryana, India. (Photo by Reuters)

India's largest carmaker Maruti Suzuki will not produce any passenger vehicles at its Gurugram and Manesar plants on September 7 and September 9. The decision comes after Maruti reported a nearly one-third decline in sales at 1.06 lakh units in August.

Sources said this will be for the first time in a decade that both production facilities will be shut on the same day. Both, Gurugram and Manesar in Haryana manufacture more than 15 lakh cars per year.

In a statement to stock exchanges, Maruti Suzuki India said it has decided to shut down the passenger vehicle manufacturing operations of Gurugram and Manesar plants in Haryana for two days, on September 7 and September 9. Both days will be observed as no production days.

In August, the company had cut production by around 34%. Prior to that, it had cut production in almost every month in 2019. In August, Maruti had produced 1.11 lakh units as against 1.69lakh units a year ago in the same month. It sold 1.06 lakh units in August compared to 1.58 lakh units in August last year.

However, Maruti Suzuki is not the only car manufacturer that has cut production in the past as many months. Several Indian car manufacturers have downsized in the wake of an economic slump.

With India's auto sales declining for the 10th straight month in August, many automobile manufacturers are even laying off workers.

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