28322
Maruti Suzuki, General Motors and Toyota cut petrol car output
Posted on 21 Jun 20125,851 Views Comments
High petrol prices have dampened demand for petrol cars. Manufacturers reducing production of petrol cars to avoid stock pile up.
The effect of higher petrol prices is telling on the car industry . With consumers gradually shifting to diesel models, petrol variants are increasingly finding no takers in the market, forcing companies to shutdown their production.
As petrol inventories pileup at dealerships and stockyards of companies, manufacturers are left with no choice but to cut production. In any case, companies are being forced to dole out incentives and discounts to boost sales of petrol cars. "So the growth is coming only at a cost," said a company official, requesting not to be named.
Top companies are slashing petrol car output to align themselves to the new market reality and these include Maruti Suzuki, General Motors and Toyota .
Maruti has already said that sales of its petrol cars are under pressure and are likely to fall by 50,000 units this fiscal. Company CEO Shinzo Nakanishi said that fall in volumes could be even steeper if petrol prices continue to move up sharply while diesel remains at the same level.
Do you like this story?
- Previous Story
- Next Story
Readers' opinions ( 0 )
Post a Comment
Post a CommentBigger the better for first-time car buyers in India
by TNN Photography: Kunal Khadse
As customer preferences change, first-time car...
Maruti Ertiga Feliz special edition to launch soon
by Ajit Menon
An anniversary edition of the Ertiga MPV sporting...
The Ferrari Way : Special Coverage
Ferrari has been voted as the most powerful brand in the world according to Brand Finance and the...
Chevrolet Enjoy : Special Coverage
Designed to take on everything from the Maruti Suzuki Ertiga to the Toyota Innova the Enjoy is...
