Maruti Suzuki may halve production capacity: Report
Maruti Suzuki may be considering cutting its production capacity by as much as 50 per cent, claim new reports. Yep. That's the extent of the toll the current COVID-19 crisis appears to have taken on the automaker. According to a Bloomberg report, Maruti Suzuki India is considering this decision regarding its production capacity in view of the skyrocketing number of coronavirus infections in the country has caused some of its sales outlets to be shut down. The report quotes R.C. Bhargava, Chairman of Maruti Suzuki, who explains that the issue is on the “sales side", which has been compounded due to a lockdown, even if partial, across several states in the country. Bhargava noted the partial lockdown as well as the curfews in some states has resulted in some Maruti Suzuki dealerships to shut down shop. He noted that half of Maruti Suzuki sales outlets in India are currently closed as the country struggles to deal with a second wave of COVID-19 infections.The company had been producing vehicles at full capacity before it decided to temporarily suspend production at some of its plants in the country so as to reroute oxygen to hospitals that are struggling with a critical deficiency of oxygen, beds, and so much more. Nonetheless, Bhargava explained, Maruti Suzuki should still be able to produce at 50 per cent to 60 per cent of its total production capacity.As the pandemic continues to wreak havoc in India, Maruti Suzuki registered a decline of about 5 per cent in bookings over the past four days, further indicating just how the pandemic is taking a toll on demand.