Maruti to halt production of petrol-run cars at Gurgaon plant tomorrow

Maruti Suzuki India Ltd will suspend the production of petrol cars at one of its plants on Saturday, a company executive said, as the country's top car maker looks to cut inventory amid slowing sales.. The executive did not say whether Maruti, controlled by Japan's Suzuki Motor Corp, will extend the production cut beyond Saturday at the Gurgaon factory.. Maruti's sales in February fell 8 per cent from a year earlier, with the industry bracing for its first decline in annual sales in a decade, as sluggish economic growth continues to weigh on demand.. Maruti's domestic sales stood at 97,955 units compared to 1,07,653 units in the year-ago period, registering a fall of 9.01 per cent. Exports, however, went up by 2.80 per cent to 11,612 units from 11,296 units in the year-ago period.. Car sales during the first 10 months of the current financial year, which ended on March 31, were down 1.8 per cent compared to the same period last year, according to the Society of Indian Automobile Manufacturers (SIAM).. Over the past few years, billions of dollars of investment has poured into the industry from the world's biggest car makers, hungry for growth. Sales grew a record 30 per cent in the year to March 2011 and annual sales have grown every year since the financial year that ended in March 2003, according to data from SIAM.. Indian car makers have been hit by high interest rates and rising fuel costs. They had hoped incentives to boost the industry would be announced in the Union Budget presented last month, but instead saw taxes rise on some sports utility vehicles (SUVs), risking growth in the market's only bright spot.. Maruti Suzuki shares were down nearly 2 per cent at 12.45 pm on the Bombay Stock Exchange, while the Sensex was in the green by 0.5 per cent.. Copyright: Thomson Reuters 2013

Maruti to halt production of petrol-run cars at Gurgaon plant tomorrow

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