Maruti Suzuki's production of entry-level cars plummets 70%: Here's why
What's the story
Maruti Suzuki has seen a whopping 70% drop in the production of its entry-level vehicles, like Alto K10 and S-Presso, in September 2023 compared to the same month last year. A regulatory filing revealed that the automaker churned out 10,705 units of these models last month, a massive dip from the 35,887 units built in September 2022. The company is yet to reveal the reason but the sharp decline could be because of the shrinking demand for entry-level vehicles.
Details
Overall production down 1%, compact models affected
The company's overall production in September 2023 experienced a slight dip of 1% to 174,978 units, compared to 177,468 units in September 2022. Compact cars such as the Baleno, Celerio, Dzire, WagonR, Ignis, and Swift also saw a marginal decrease in production. Maruti Suzuki rolled out 90,849 units of these models in September this year, as opposed to 92,717 units in the same month in 2022.
What Next?
Mid-size segment also sees decreased production
In the mid-size segment, where Maruti Suzuki offers the Ciaz sedan via its NEXA retail network, production stood at 2,304 units in September 2023. This is down from the 2,654 units recorded in the same month last year. This suggests that not only entry-level models but also mid-size vehicles are grappling with production and demand challenges.
Insights
SUVs and MPVs witness manufacturing boost
On a brighter note, Maruti Suzuki's production of MPVs and SUVs soared due to strong sales. In September 2023, the automaker manufactured 56,579 units in the utility vehicle category, which includes cars like Brezza, Ertiga, Grand Vitara, Fronx, Jimny, XL6, and Invicto. This marks a significant jump from the 29,811 units retailed in the corresponding month last year. Additionally, the van segment witnessed a production boost with 13,014 units produced compared to 12,860 units in September 2022.