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Manesar Plant Issue does not Affect Swift Bookings

Posted on September 26th 2011

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 Manesar Plant Issue does not Affect Swift Bookings

Maruti Suzuki India is quite confident that the impact of the strike by the workers at the Manesar plant will not have much impact on the sales this festival season. The company has recorded bookings of about 1.08 lakh units of Swift. The management is certain that the labor issue will soon be sorted out and it will not impact the supply of the new Swift model.

On August 29, 950 workers were asked not to enter the plant till they sign a “good conduct bond”. This was done when it was found that the quality of the cars produced in the plant were not up to the mark. Only 116 workers have signed the bond till now. The company has faced a loss of about 900 crores and the production of 18,000 units of the car till date.

Mayank Parekh, the Managing Executive Officer of the Marketing and Sales division of Maruti Suzuki India remarked that “The demand for Swift is huge. It is the supply side which we had a problem in the first part of this month, but that is gradually coming to normal levels.” He seemed quite confident that the supply constraints would not have any effect on the sales during the month of October.

He remarked that about 700 units of units of Swift are being produced in spite of the strike in the plants of Manesar and Gurgaon plant on Saturday. Many engineers from the Gurgaon plant have been shifted to Manesar and recruited more than 800 workers to work in the Manesar plant.

He said that the company plans to sell about 17,000 units of the new Swift in a month. The previous version sold about 12,000 units in a month. The company was optimistic because of the bookings of the new version that have been made so far. The company also plans to offer many discounts during the festival season in order to boost the sales of this new model.

The rise in the price of the diesel and petrol has also hit the auto industry very hard; the car sales in India have come down to some extent. However, this company is all set to woo its customers in spite of all odds; the Manesar plant will soon start rolling out AStar hatchback and SX4 sedan.

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