Maruti fears stir may hit car sales
June 7: Maruti Suzuki India, the country’s largest car maker, on Tuesday said that its sales may be hit if strike at its Manesar plant prolongs, while it has already incurred a production loss of about 3,000 units till the fourth day of stir by workers.
Even as the car maker tries to find an end to the impasse, it received a shot in the arm from Haryana Labour Commissioner, who termed the strike as “unwarranted” and also backed the company’s decision to sack 11 employees. “If the strike continues for a long time, it will affect our sales and will increase the current waiting period of our diesel cars,” the Maruti Suzuki India chairman, Mr R.C. Bhargava, said. The Manesar plant rolls out about 1,200 units every day in two shifts. The factory produces hatchbacks Swift and A-Star and sedans DZiRE and SX4.
While diesel versions of Swift and DZiRE at present have an waiting period of three to four months, customers are waiting for up to one and half months to take the delivery of SX4. The A-Star is Maruti’s flagship export model. “Export is also likely to be impacted if the strike prolongs... The stalemate still continues,” he said.
The strike comes at a time when Maruti has seen slowing down of sales in the recent past as the auto industry grapples to overcome challenges of rising fuel prices and interest rates. In May, Maruti’s domestic sales grew by just 3.9 per cent to 93,519 units from 90,041 units in May, 2010. Talking about the loss to the company, a Maruti spokesperson said: “The situation is the same as yesterday... We have lost production of around 3,000 units so far since Saturday”. As per industry estimates, the value of the loss is around Rs 150 crore till Tuesday.
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