Maruti India's Petrol Car Production Shut For 3 Days: Observes 8% production Dip

Observing the decrease in Petrol cars' Stock, Maruti India has cut down the production of the cars like Maruti Alto, WagonR, Eeco and A-Star. The production has been decreased by 8 percent from the monthly capacity. The two lines of the petrol variant cars at the Gurgaon plant were shut down for three days- 25^th & 26^th of May and 2^nd of June. The officials of Maruti said that the shutdown is for the maintenance purpose of the plant, which will be atleast a week-long.

One of the official reported that the inventory is of about 1.4 lakhs units of the cars including the cars with dealers. Around 8,000 units of loss have been created by the three days' shutdown. The company produces about one lakh cars a month that have 25 working days with full capacity at the Gurgaon and Manesar manufacturing unit. Diesel car came into demand since 2010, when the government of India de-regulated the petrol prices. The rise in the price of the petrol gave the chance to widen the gap between petrol and diesel cars.

One of the Maruti official said that the company has signed an agreement with Fiat India in January to deal for the supply of about 9,000 diesel engines. There were investment plans of about Rs. 1,700 crore for doubling up of the diesel engine capacity at the Gurgaon facility to maximum six lakh units by the year 2014. Maruti petrol cars were in demand earlier, when the costs of the fuel in particular were stable. The models which are available for the diesel option are Swift, Dzire, Ertiga and Ritz; out of which, only 20 to 30 percent of the production is in the petrol version.

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