Maruti witnesses loss of $ 20 mn due to worker’s strike

The largest passenger carmaker of India, Maruti Suzuki has lost about $ 20 mn because of  the ongoing worker’s strike at its Manesar  factory. This amount has been lost since the starting of  the strike. The company source requested anonymity, as he was not authorized to speak to media. He told that the approximate loss in production since start of strike was 800-900 million rupees.  Production of about 1800 Maruti cars has been suffered because of this strike. The workers are demanding recognition of new union. 

The firm that is controlled by Japanese sacked 11 employees from group of 2000 strong employees from its production line situated at Manesar, Northern state of Haryana. After that, the workers refused to come to work and there is no work in the plant since then.  Maruti India produces 1200 cars everyday in two shifts at its Manesar plant. Mainly mid-sized cars are produced in this plant such as Maruti Swift Dzire and Maruti SX4.
 
This strike has come at a time when the sales of Maruti cars have grown up by 1.9% year-on-year. It has reached 104,073 in May, this year. It is its slowest growth rate since three years. Reason behind this is moderate demand for cars in India due to increasing input costs and expensive auto loans. The company source told that the strike is illegal as no notice was given in relation to it. He further added that they could not simply say that they want a change.  According to the company, this strike will not affect the delivery and sales of the cars by the company.  The shares of the Maruti Suzuki fell for second day in row at BSE because of  strike at its Manesar plant. The shares were down to 2% to day’s low of Rs. 1206 on Tuesday.

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