Maruti to shut 2 units today to adjust demand

The development comes in the wake of continued slump in the automobile market. MSI had reported 14.4 per cent decline in its total sales in May this year at 84,677 units. Its domestic sales declined 13 per cent at 77,821 units.

MSI has been producing about 5,000 units per day from its Gurgaon and Manesar plants. The company has a installed annual capacity of about 15 lakh units,which will go up to 17.5 lakh units by September when its third unit at Manesar goes on stream.

Meanwhile,Maruti chairman RC Bhargava said that the company expects petrol car sales to nearly match those of diesel models. We had always expected this to happen,because the diesel option constituted almost 70 per cent of the cars which had diesel,this was driven by artificial pricing. Since the pricing gap is coming down,we will expect diesel cars to come back to 40-50 per cent. I think we are getting there, he said.