Shares of Maruti Suzuki India dipped over 4 per cent in intraday on Monday after media report suggested that the country's largest car maker slashed its production in March quarter due to muted demand in the passenger vehicle market.
According to a Business Standard report, Maruti has estimated to have cut production by 26.8 per cent to about 126,000 units in January-March compared to more than 172,000 units a year ago.
"A slowing demand in India's passenger vehicle market has prompted the car market leader, Maruti Suzuki India, to cut production by a quarter over March last year," the reported quoting people aware of the development.
The report further added, "Slowing demand and uncertainties ahead of the elections pushed the production level for this month to its lowest since March 2015".
Reacting to the news, shares of Maruti Suzuki India tumbled as much as 4.4 per cent to touch an intra-day trade low of Rs 6780.20 apiece, against its previous close of Rs 7092.05 on the BSE. Snapping two-day gaining streak, shares of the large cap stock closed at Rs 6,910.35, down 2.56 per cent.
In a similar fashion, stock of the company closed trade at Rs 6,902, down 2.57 per cent on the National Stock Exchange. During the day's trade, it touched an intra-day low of 6,776.60 after making a negative start on the local bourses.
The BSE Auto index ended trading in the red at 19428.46, down by 1.36 per cent. Bharat Forge (Rs 518.10, 2.90%), Hero MotoCorp (Rs 2671.50, 2.47%), Motherson Sumi Systems (Rs 162.35, 1.75%), Balkrishna Industries (Rs 915.40, 1.69%), were among top losers across the auto space.
Meanwhile, the BSE SENSEX closed at 38,095.07, up by 70.75 points or by 0.19 per cent, and the NSE Nifty ended at 11462.2, up by 35.35 points or by 0.31 per cent.