Maruti Suzuki stock slips 5.2% to hit 52-week low on production cut worries

The sector has been pressing the government for a reduction in the goods and services tax

The Maruti Suzuki stock slid by 5.2 per cent to hit its 52-week low on Monday on worries that a slowing demand environment, production cut, and declining sales could lead to further downgrades. The company has cut vehicle production for the fifth consecutive month in a row. 

The company posted a 16 per cent year-on-year fall in passenger vehicle sales in June and a 21 per cent fall in sales in the June quarter. Analysts have sharply downgraded their volume estimates for 2019-20 (FY20) from single-digit growth (5-8 per cent) to flat volume performance. The impact on the sector could