Carmakers are cutting production to check the huge build-up of inventories and slowing demand in Motown. Sluggish retail sales are forcing companies to reschedule their production cycles. Carmakers are slashing orders for automotive components after altering their production cycle for the July- September quarter. According to some vendors, Maruti Suzuki, Tata Motors, Ford Motor and GM have taken a hit on sales, and are therefore streamlining production plans to adjust to the current slowdown.

The largest manufacturer Maruti Suzuki is adjusting the production in line with the huge inventory lined up with the dealers. Meanwhile, carmakers have reduced discounts fearing a big hit on their bottom lines. Maruti has more than halved rebates on Zen Estilo and WagonR to Rs 10,000 from Rs 30,000 from July 1 while Tata Motors’ cumulative discount for the flagship model Indica has come down to Rs 30,000 from Rs 42,000 last month. Similarly, Hyundai Motors is not giving free fuel vouchers with i10.

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