Maruti Suzuki India Ltd. is actively addressing its inventory levels in response to slowing domestic sales, with Chairman RC Bhargava announcing plans to meet an internal target of maintaining a 30-day inventory by the end of November. This adjustment may lead to a shift in the company's production strategy, as Bhargava emphasized the importance of aligning production with dealer sales.

The company is now focusing on retail sales data rather than wholesale figures to better assess market demand, a move aimed at improving cost efficiency. Bhargava noted that while certain models, like the popular WagonR hatchback, are performing well, the overall small car segment is facing challenges.

A significant concern highlighted by Bhargava is the ongoing affordability issue for prospective car buyers, which he believes could hinder growth in the sector. He expressed hope that as the economy grows, the barriers to affordability would diminish, yet acknowledged that the transition from two-wheelers to cars remains a challenge for many Indians. The impact of increased costs due to new BS6 emission norms particularly affects smaller vehicles.

In stock market performance, Maruti Suzuki shares advanced 3% intraday, recovering from a prior decline. The stock was trading at Rs 11,275, showing an 8% gain over the past year. Analysts remain optimistic, with 31 out of 46 maintaining a 'buy' rating and an average 12-month price target of Rs 13,682, suggesting a potential upside of 21%.