India’s largest car maker, Maruti Suzuki, ended a nine-month decline in auto production in November, when production rose by 4.33pc from the prior year period. A large increase in its compact car segment lifted overall volumes and negated a drop in mini car production.
The trend reversal confirms previous Davis Index reporting on an increase in steel orders from automotive makers in November. Steel producers said that order books from India’s automotive sector picked up towards the end of October and stayed strong through November; with some suggesting car makers have their production lines committed to increased activity for the next three months.
A drying up of dealer inventory and pipelines after two months of heavy discounting before and through India’s festive season in October sparked the inventory wipe out and a reversal in supply-demand. Several car makers now have pending order books that run through to February.
In November, Maruti Suzuki produced a total of 141,834 vehicles across all it vehicle segments, up from 135,946 vehicles a year ago.
The company produced 102,185 mini and compact cars, up from 95,883 units a year ago. A 6,000-unit drop in mini car production was negated by resurgent compact vehicle production which rose to 78,133 units from 65,754 units previously.
In other segments, Maruti Suzuki produced 27,187 utility vehicles, up by 18pc from 23,038 units a year ago.
Light commercial vehicle production grew to 2,750 units in November, up from 1,797 units a year earlier.