Maruti Suzuki India Ltd was forced to put a halt on its operations due to the rift between the company and the workers. Following the hard decision being taken, the country's biggest car maker has posed a serious risk for itself. It seems that MSIL would now be unable to cash in on the opportunity of the forthcoming festive season, to make an effort and swell up the adversely affected sales. The use of such an advantage would also have enabled the company to curb the trend of that of buyers opting for other car brands over Maruti.
In the latest adversity, at least 350 contract workers, who load vehicles onto transporters that are then despatched to dealerships across the country, showed their resistance and went on strike.
The situation went berserk and out of control recently as the agitation took a violent turn with Maruti supervisors being harassed and physically abused by some workers who were part of the company's working force. The company has been struck by an impasse and has failed to find a way that pours oil on the trouble waters. The situation arose due to the labour unrest that began on 29th August at various plants in Gurgaon and Manesar in Haryana.
Amidst all the fuss, Haryana Labour minister Shiv Charan Lal Sharma has indicated that he would make efforts to bring about peace and negotiations between the management and workers which may help in ending the strike.
As the Maruti camp desperately struggles to get over with the issue, its rivals have already started taking advantage of the unrest in the company. One such company, for which things have turned out to be profitable is Honda Siel cars India, whose dealers convey that there’s now a four-month waiting period for its relaunched cars. “We are sold out for the next three months. We have only been able to meet 55% of the demand that Jazz has generated. We cannot ramp up production as parts supply from Japan is still a concern. Things should improve from November onwards,” a Honda spokesperson was quoted as saying.
Nikhil Deshpande, Research Analyst with a Mumbai-based brokerage firm confirmed the trend by saying that, “Things are getting from bad to worse for the company. I think these issues are beyond money and profits. It has become a long-term worry for the company. These issues will linger on and will take at least three-four years to heal.”
On the other hand, Maruti dealers have been left with no option but to stop taking orders for the Swift, the new version of which was launched on 17 August, a day after the new Honda Jazz was revealed.
Delhi-based Maruti dealer expressed concern and conveyed the ramifications of the decision being taken, saying that, “We have stopped taking bookings for Swift. There is a waiting period of six-eight months for the Swift. This has forced customers to look for other options. A lot of them have gone to Honda.”
Thus, seeing at the present condition, MSIL does not expect a silver lining, at least this year, amidst all the issues that have distressed the camp.
