Maruti shares tank over 5 per cent; other auto scrips too fall

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Shares of Maruti Suzuki India fell by over 5 per cent on Monday after the company cut vehicle production for the fifth consecutive month in June.

The scrip dropped 5.21 per cent to close at Rs 6,033.15 on the BSE. During the day, it tumbled 5.95 per cent to Rs 5,985.55, its 52-week low.

At the NSE, shares declined 5 per cent to close at Rs 6,038.70.

The auto major Friday said it slashed total vehicle production, including Super Carry LCV, by 15.6 per cent in June to 1,11,917 units as compared with 1,32,616 units in the year-ago month, according to a regulatory filing.

It cut production of mini segment vehicles, including models like Alto, by 48.2 per cent 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 per cent to 66,436 units in June from 67,426 units earlier.

Auto manufacturers have been facing muted sales for quite some time now.

Automakers like Mahindra & Mahindra and Tata Motors have also announced adjusting production to tapering market demand to cut down inventories.

Selling was also seen in other auto companies, with Hero MotoCorp declining 5.31 per cent, Tata Motors falling 3.43 per cent and Bajaj Auto ending 2.05 per cent lower on the BSE.

Also Read: Maruti cuts production in June for fifth month in a row