MSI also slashed production of compact segment cars by 9.54 per cent to 84,705 units in May from 93,641 units in corresponding month of last year. Production of utility vehicles also witnessed a decline of 3.21 per cent to 24,748 units, as against 25,571 units in May last year. The company said production of vans declined by 34.99 per cent to 10,934 units last month compared to 16,819 units in May 2018.
MSI had cut production by around 10 per cent across its factories in April. In March, the company had reported a production cut of 20.9 per cent across its factories. In February, the company had cut production by over 8 per cent to 1,48,959 units from 1,62,524 units produced in the year-ago month.
Auto manufacturers have been facing muted sales for quite some time now. The slowdown has forced companies to adjust their production schedules to market demand.
Last week, Mahindra & Mahindra (M&M) said it will shut production across plants for up to 13 days in the ongoing quarter to adjust to market demand. Overall passenger vehicle sales in India dropped over 17 per cent in April, the worst monthly fall in nearly eight years, as subdued sentiment and the ongoing liquidity crunch hit car sales.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.