Labour conflict becomes the problem for Maruti Suzuki
Posted on September 21st 2011Welcome back!

The persistent label conflicts in Manesar Facility that has affected the supply of both the models such as Dzire and Swift that has created the issues for Maruti that is already reeling under increasing acceptance of its diesel versions of GM Beat, Toyota Etios, Liva, Ford Figo and VW Polo.”We have lowered our 2012-13 volume estimates by 4 per cent to 1.46 million by factoring in a 200 basis point lower domestic passenger vehicle market share at 43 per cent for MSIL. On the back of prolonged labour-related issues at Manesar and assuming that normal production is restored by October, we have reduced our financial year 2012 estimated volume further by 7 per cent to 1.26 million,” said Mr Basudeb Banerjee, an auto analyst.
The production of models in the Manesar plant has been 500 units collected a day in the previous week against the common level of 1,250 units. The Swift has a waiting duration of 3 to 6 months for diesel as well as petrol variant comparatively. The basis point loss of 1,000 in domestic passenger vehicle market share from the year 2011 to the current 35% is a structural one, depressing market share by minimum 200 basis points in very long run according to Mr Banerjee.
Another analyst expected the market to grow at 9 to 10% this financial year however Maruti to grow at half the rate. The launching of the Diesel version of both Liva and Toyota Etios has created a great murmur in the automobile market with the booking of almost more than 4,000 for both the models in less than a week. For both of these models, the waiting period is almost 6 to 8 weeks on general. Etios Petrol has already crossed the monthly sales of almost 4,000 units that affect the growth of Dzire directly. GM, General Motors is the key receiver of Maruti losing the market share according to the research performed by Quant Global Research. No waiting period is there for the Beat and Spark, the petrol models there is a 4-weel waiting period if anyone wants particular color models of Beat diesel. No cash discount is offered on diesel model however the advantages such as accessories with rupees 15,000 are available.
“There are 1,500 pending orders this month, along with 2,000 enquiries in the past two weeks for the Beat Diesel alone. Although we generally see incremental sales of 15-20 per cent during festive season, this time, due to the slowdown, we are expecting incremental sales of not more than 5 per cent. Nevertheless, for Beat Diesel, we are hopeful of seeing 20 per cent incremental sales,” Mr P. Balendran, Vice-President, GM India.
Demand for Polo diesel is full-bodies. Waiting period for Polo diesel is 8 weeks in spite of being priced at rupees 50,000 to the Swift diesel. Increasing cash benefit of almost 40,000 for Polo petrol model is foremost to equality in on-road cost as compared to the model called Swift Petrol.
By editor in Auto India News, Auto Industry News, Maruti Suzuki
Raquel Alessi Interview responded on 08 Apr 2012 at 7:36 am #
Just want to say your article is as amazing. The clearness for your publish is simply cool and i can think you are knowledgeable in this subject. Fine with your permission let me to snatch your RSS feed to keep up to date with coming near near post. Thanks one million and please carry on the rewarding work.