Maruti Suzuki sales may get hurt if strike continues

Published June 7, 2011
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On Tuesday, strike at the India's largest carmaker's plant entered the fourth day, resulting in a revenue loss of Rs 150 crore

Maruti Suzuki sales may get hurt if strike continues highlights

Maruti Suzuki may increase the waiting period for its diesel cars if the strike at its Manesar plant in Haryana continues for a longer time, its chairman RC Bhargava said. "If the strike continues for a long time, it will affect our sales and will increase the current waiting period of our diesel cars," said Bhragava. "Currently dealers have enough stock of petrol segment cars, while a short-term effect may be felt for some diesel variants, which in itself is 20% of our entire product portfolio."

On Tuesday, strike at the India's largest carmaker's plant entered the fourth day, resulting in a revenue loss of Rs 150 crore.

The company's Manesar plant rolls out about 1,200 units every day in two shifts, which comprises Swift and A-Star hatchbacks and the DZire and SX4 sedans. While the production of high-volume compact cars - Alto, Wagon R and Estilo - takes place in its three Gurgaon-based facilities.

The company faces stiff resistance as the strike has the support of around 2,000-odd workers, including 11 who were sacked on Monday for demanding recognition of the newly formed Maruti Suzuki Employees Union (MSEU) at Manesar, independent of the existing Maruti Udyog Kamgar Union that primarily operates out of Maruti Suzuki's Gurgaon facility.

The company has got the support of the Haryana Labour department on the issue of termination of services of its 11 regular employees. The state labour commissioner Satwanti Ahlawat said: "Maruti is within its right to terminate any employee who is creating indiscipline in the factory premises and the ongoing strike that has crippled production at the plant, which is not justified."

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