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Maruti may cut production if demand remains sluggish

December 24, 2008 13:17 IST

Maruti Suzuki [ Images ] said on Wednesday it may consider production cut if the market does not improve.

The company, which has been negotiating contract manufacturing deal for its A-Star [ Images ] model with Nissan [ Images ], also expects to start exports for the Japanese car maker by around February-March next year.

Maruti Suzuki India [ Images ] managing director Shinzo Nakanishi said that across the world there has been a slowdown in demand, including China, India and other BRIC [ Images ] countries.

"I hope not but if we are obliged then we will do it," he told reporters here when asked if the company would go for a production cut.

On the company's planned export of the A-Star for Nissan, an agreement on the volume has not been signed as yet but shipment to Europe is "expected by about February-March next year," he said.

"Our focus is on the network stocks. If the network stock is overflowing, then the company would take appropriate measure," he added.

In the April-November period, the company's sales growth witnessed a negative growth of three per cent compared with the corresponding period last year.

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