Maruti sales may drop due to strike at Manesar plant
Published On Jun 08, 2011 12:36 PM By Meenal
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Maruti car sales in India may witness a dip due to the strike at the Manesar facility. The strike that began on Saturday continued till reports last came in. Meanwhile, management of Maruti plant at Manesar has expressed its concern that the strike would adversely affect Maruti car sales in India besides delay in delivery of Maruti diesel cars in India. In the four days of strike Maruti has incurred a revenue loss of around Rs 150 crore and a production loss of around 1900 units.
RC Bhargava, chairman of Maruti Manesar plant in Haryana reportedly said that in case the strike continues for a long time, production would be hit and thus it will affect sales and would also delay delivery of diesel cars. Bhargava reportedly told media that dealers across the country have currently enough stock of petrol cars however, if the strike goes on there would be shortage of diesel cars.
Notably, Maruti’s Manesar plant has an installed capacity of producing 1200 units per day and due to the strike there is a production loss of around 650 units per day mostly of diesel cars. After four days of strike the production loss has reached to over 1900 units. The Manesar plant is currently producing hatch small cars such as Maruti Swift, Maruti A-star and sedans including Maruti Swift Dzire and Maruti SX4. The Gurgaon facility takes car of the production of Maruti’s best sellers such as Maruti Alto, Maruti Wagon R and Maruti Estilo.
Over 2000 workers went on strike starting second shift on Saturday. In the absence of any reconciliation and continuation of the deadlock, Maruti sacked 11 workers on Tuesday hoping to fuse the strike but it did no good and workers retaliated. Meanwhile, no solution was arrived at and the management has disagreed to accept the demand for recognition of a new workers union. Moreover, the Haryana Labour department is also said to have given a green signal to the termination of the 11 employees by Maruti India on Tuesday.