Maruti Suzuki India Ltd (MSIL) has increased its vehicle manufacturing target for FY20 (2019-20) after it scaled up its production in November by 4.33 per cent.
India's largest carmaker has raised the target (for the year ending March 31) by 6% or 60,000 units, to 1.65 million vehicles, sources told the Livemint.
Maruti has increased its vehicle manufacturing target because it is anticipating a higher demand in this fiscal's (FY20) fourth quarter owing to a rollout of more cars that are compliant with BS-VI (Bharat Stage-Vi) emission norms, affordable financing options as well as strong demand for its new offerings, XL6 and S-Presso, sources told the news daily.
"Maruti has moved most of its petrol products to BS-VI and can now afford to increase production. It has managed the transition quite well, despite the hit in the first seven months of the fiscal," one of the sources told the news daily.
Presently, there 15 Maruti Suzuki models that are BS-VI compliant. BS-VI is the latest emission norm instituted by the government.
The Bharat stage emission standards aim to regulate the release of air pollutants from engines. The norms are based on European regulations and were first introduced in 2000. In 2016, the government decided to skip the BS-V norms and adopt BS-VI norms by 2020.
After cutting its output for nine months straight over the ongoing auto slowdown, Maruti increased its production in November by 4.33 per cent. India's largest carmaker recently said in a regulatory filing that it produced a total of 1,41,834 cars in November compared to 1,35,946 units in the same period last year.
Of the total cars produced in the month, 1,39,084 units were passenger vehicles, while 2,750 units were light commercial vehicles. The passenger compact car category, which comprises cars like New WagonR, Celerio, Ignis, Swift, Baleno, OEM Model, and Dzire, accounted for maximum 78,133 cars.
Utility vehicles such as Vitara Brezza, Ertiga and S-Cross accounted for the production of 27,187 units, an increase of 18 per cent as compared to 23,038 units a year ago. Mid-sized sedan Ciaz's output increased to 1,830 units in November from 1,460 units in the same month last year.