Auto Industry Slowdown: Maruti Suzuki Facing Tough Times in India

Due to the auto industry slowdown, Maruti Suzuki is facing tough times as the massive production cut by the company is a clear symbol of falling sales and fear of inventory pile-up. The best-selling car brand of India sells over 1.50 lakh cars in a month in good times while recently, the number has fallen down by almost 20%.

The dealers are facing problems with the new car business as the number of buyers has seen a sharp drop due to factors like the elections and an increase in the on-road cost of the cars. High taxation in the Indian market means consumers have to pay a higher value at every step and thus, purchasing drops significantly with this negative measure.

The high amount of registration charge, coupled with one-time insurance payment for 3-years and many other factors like 53% GST on the production of cars above 4-meter has made it difficult for the brands to survive.

Maruti Suzuki is a special case here as huge numbers are definitely more vulnerable than brands who already have a number smaller than even the change witnessed by the favourite Indian brand. The official dealer meet in Macau was not held for any celebration like before as the partners of the brand were made aware of the crisis-like situation by the Chairman himself.

The official figures explained that even after offering up to 15-18% of discount, there is a slowdown for sure in the industry. Interestingly, some of the most reputable Maruti Suzuki dealers from the metro cities had to shut business in the last few months due to pilling losses.

The effect of the auto industry slowdown was clear on all the brands as negative sales growth was posted by almost 90% of the brands in India. Some are even happy with sustainable numbers. Maruti will bring the new Future-S based car and sporty Ertiga to bring back some numbers. They are even considering the 7-seater WagonR to attract practical car buyers.

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