Series of labor strikes at Manesar may force Maruti to speed-up work for Gujarat plant

Thursday 20 October 2011, 11:07 AM by Vikas Yogi

The ongoing labor unrest at the Maruti’s Manesar plant has spoiled the Haryana’s industry hub image very badly. In last few months, there have been as many as 3 major strikes at the Maruti’s Manesar plant, causing huge losses to the car makers. Maruti Suzuki India Limited, which already has giant car making facilities in Gurgaon and Manesar of Haryana, is now looking out of the state for its new manufacturing unit. Struggling with repeated halts in the production, the Japanese auto giant has now hastened its expansion process out of the state. The company has selected Gujarat for its third manufacturing facility in the Indian market.

Series of labor strikes at Manesar may force Maruti to speed-up work for Gujarat plant | CarTrade.com
No Respite in Maruti Camp Yet

Gujarat on the other hand, is emerging as an auto manufacturing hub with a number of international auto makers choosing the state to set-up their new manufacturing units. The French car maker Peugeot has already finalized its plans of setting-up its production plant in Gujarat’s Sanand from where Indian auto giant Tata Motors rolls-out its small car Nano. Moreover, the Indian unit of the US based leading car maker Ford Motors, has also selected Gujarat for its upcoming plant.

The Japanese parent of Maruti Suzuki is concerned with the halted production, converting into huge losses for the car maker. Moreover, the delivery period of the popular Maruti cars like Swift and Dzire is continuously rising, converting into the slowing down demands due to uncertainties regarding the delivery period of the Maruti cars.