Maruti attenuates production of Wagon R, Ritz, Estilo and Alto

Maruti India after witnessing low demand for some of its models has finally decided to slash the production of its hatchbacks such as Maruti Alto, Wagon R, Maruti Zen Estilo and Maruti Ritz. However the production of Maruti's flagship car, Maruti Swift and Maruti Swift Dzire will remain intact.

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R.C. Bhargava, the Chairman of Maruti recently, reported about the slow down in the market . It has been speculated that these low sales figure have been witnessed after the recent hike in fuel prices and the increasing interest rates. The Indian car market experienced a fall of 16 per cent last month for the first time in the last two and a half years. The interest rates have raised 11 folds since March 2010 and this has an ill-effect on the auto market as huge number of car buyers in India opt for car finance scheme from the commercial banks.

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Maruti is the first company to officially announce about the lowering of the production. They have lowered down their production to 17,000 units last month including both the plants Gurgaon and Manesar. They sold a total of 75,300 units in July which is far less than what they did last year i.e. approximately 100,857 units. The company plans forward to raise a capacity to deliver million cars per year. This is a sad news as they have been into delivering 1.3 million units per year, presently. With the present strategies, Maruti Suzuki India envisages to rev up the prodcution to around 1.8 million units by the fiscal year 2012 to 2013 when the Indian car market may rise upto 4 million units as per the related studies.

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