Mumbai: Maruti Suzuki India (MSI) has said headwinds like softening of demand in the domestic market and protectionist measures abroad may impact its ability to create value in the short term.
The company, which has over 50% market share in the domestic passenger vehicle industry, has been impacted by sluggish offtake and has seen total sales drop 33.5% in July at 1,09,264 units.
In the short term there are certain headwinds that might affect the company's ability to create value, it informed shareholders of the company.
"These include slowdown in consumption leading to softened demand in domestic market, weakening of Indian economy due to protectionist trade measures adopted recently by various countries, uncertainty in commodity prices and foreign exchange fluctuations," it added.
The company will, however, continue to work on the necessary enablers to tap opportunities in the medium and long term, MSI said.
With prolonged slowdown, MSI has been forced to take various steps, including production cuts at its manufacturing plants, in order to adjust its inventory to market demand.
It had cut vehicle production for the fifth consecutive month in June by 15.6% to 1,11,917 units as compared to 1,32,616 units in the year-ago month.
As per industry sources, the company has also reduced temporary manpower at its facilities and freezed new hiring till the slowdown continues.
