Maruti Suzuki dips on temporary suspension of production

Shares of Maruti Suzuki India have dipped 2.4% to Rs 3,495 on the BSE in early morning trade after the company said it has temporarily suspended production at its Gurgaon and Manesar plants on account of the ongoing agitation.

“Owing to the agitation in Rohtak and nearby areas, supplies of certain components have been disrupted. As a consequence, the Company has had to temporarily suspend manufacture of cars at its facilities in Manesar and Gurgaon, starting Saturday (February 20) second half”, Maruti said in a statement.

The company is making efforts to arrange the components from other sources. It will resume operations once the supply of components is restored. The combined output from Manesar and Gurgaon is about 5,000 vehicles per day, it added.

The stock of the country's largest car maker is underperforming the market by falling 15% thus far in February, after the company posted lesser than expected sales numbers for the month of January. The S&P BSE Sensex was down 4.4% during the same period.

The January 2016 total sales volume of the company declined by 2.6% to 1.13 lakh units. Domestic sales of the company showed a mere rise of 0.8%, while exports tumbled 34.6% YoY.

At 10:00 AM, the stock was down 2% at Rs 3,513 as compared to 0.27% rise in the benchmark index. A combined 392,177 shares changed hands on the counter on the NSE and BSE so far.

Maruti Suzuki India Limited