Maruti Suzuki falls 3%, hits 2-yr low after production cut

Share price of auto major Maruti Suzuki fell close to 3 percent intraday on Monday hitting a 2-year low after the company informed bourses that it has cut vehicle production for the fifth consecutive month in June.

The auto major said it slashed total vehicle production, including Super Carry LCV, by 15.6 percent last month to 1,11,917 units as compared to 1,32,616 units in the year-ago month.

Total passenger vehicle production stood at 1,09,641 units last month, down 16.34 percent from 1,31,068 units in June 2018.

The auto major cut production of mini segment vehicles, including models like Alto, by 48.2 percent to 15,087 units last month as against 29,131 units in the year-ago period.

Similarly, it slashed production of compact segment cars like WagonR, Swift and Dzire by 1.46 percent to 66,436 units in June from 67,426 units earlier.

Production of utility vehicles witnessed a decline of 5.26 percent to 17,074 units, as against 18,023 units in June last year.

The company said production of vans declined by 27.87 percent to 8,501 units last month compared to 11,787 units in June 2018.

The car market leader had cut total production by over 18 percent in May. Similarly, it had slashed production by around 10 percent across its factories in April.

Technical Analyst Mitessh Thakkar of mitesshthakkar.com has recommended a sell on Maruti Suzuki with a stop loss of Rs 6430 and target of Rs 6,100.

At 10:22 hrs Maruti Suzuki India was quoting at Rs 6,184.90, down Rs 179.85, or 2.83 percent. It has touched a 52-week low of Rs 6,151.00.