Maruti cuts output as car sales fall

Thecountry's largest car maker Maruri Suzuk i India on Friday aid it has cut downproduction on most of its models this month due to slowdown in the market.

The company said by October it will finalise the locationfor setting up its new production facility, which could entail an investment ofabout Rs 6,000 crore.

"We have reduced the production of all the modelsexcept Swift and DZire. The market is not doing good now," Maruti SuzukiIndia (MSI) Managing Director and CEO Shinzo Nakanishi said.

He, however, declined to specify by how many units thecompany has cut down its production.

When asked about the sales target, MSI Chairman R C Bhargavasaid, "The current slowdown is short term and the market will reviveduring the festive season. However, we will not achieve a double digit growthduring the fiscal".

On MSI's plan to enhance capacity, Bhargava said the companyis scouting many locations in different states, including Gujaratfor setting up a facility.

"We have been looking at various sites for almost oneyear. Gujarat has an advantage as our Mundraport for export is located there," Bhargava said.

He said the company is likely to finalise the location byOctober this year.

Talking about the capacity of the planned facility, Bhargavasaid: "The ultimate optimum size will be to have installed capacity of 7.5lakh to 10 lakh units per year...It should require an investment of Rs 6,000crore".

The facility is likely to be operational by 2017, he added.