NEW DELHI: Shares of Maruti Suzuki came off nearly 1 per cent in morning trade on Friday after it said it cut vehicle production by around 21 per cent across its factories in March due to subdued demand.This is the company's third consecutive month with higher production cut, which indicates the slowdown will stay on longer, analysts said.The auto major produced a total of 1,36,201 units in March, it said in a regulatory filing.
"In the major cashflow generating segment of the company - Mini + Compact (WagonR, Swift, Dzire, Baleno)- the production is down by 22.5 per cent YoY which would have a major impact on cost," said Sameer Kalra, Founder at Target Investing.
The cut in production will impact the auto ancillary business also.
"Such a slowdown will hurt auto ancillary companies much harder," Kalra said.Shares of the company traded 0.32 per cent down at Rs 7,091.80 on BSE around 9:40 am.