Maruti Suzuki Resumes Production At Gurgaon Plant; Stock Falls 7%
Maruti Suzuki shares declined by around 7 per cent on the BSE after the country's largest vehicle maker re-started production at the Gurgaon plant as the country entered the 4th phase of the lockdown, albeit with less restrictions, to curb the spread of Covid-19. The shares ended at Rs 4,735, lower by 366 points or 7.1 per cent, on the BSE. The stock opened at the day's high of Rs 5,100 and touched a low of Rs 4,683.
"You are kindly informed that Maruti Suzuki India Limited would re-start production of vehicles at its Gurgaon plant from the 18th of May 2020. All activities would be carried out strictly in accordance with the Government regulations and guidelines and observing the Company's own concern for the highest standards of safety, the company said in a filing to the stock exchanges.
The Gurugram facility rolls out models such as S-Cross, Vitara Brezza, Ignis and Super Carry light commercial vehicles. The re-opening of the Gurgaon plant follows the Centre's decision to allow gradual resumption of economic activity by relaxing lockdown measures in green and orange zones.
Maruti Suzuki had restarted production operations at the Manesar plant on May 12. However, the company hasn't yet received permission to start its Gujarat plant as it is located in a containment zone.
The BSE Sensex ended the day at 30,029, weaker by 1,069 points or 3.4 per cent and NSE Nifty settled at 8,824, down 312 points or 3.4 per cent.
