Sales to be hurt if strike lingers, warns Maruti

The country's largest car maker Maruti Suzuki India today said its sales might be hit if strike at its Manesar plant prolonged. It has already incurred production loss of about 3,000 units till the 4th day of stir by workers.

Even as the firm tries to find an end to the impasse, it received a shot in the arm from Haryana Labour Commissioner who termed the strike as "unwarranted" and also backed the company's decision to sack 11 employees.

"If the strike continues for a long time, it will affect our sales and will increase the current waiting period of our diesel cars," Maruti Suzuki India (MSI) Chairman R C Bhargava said.

The Manesar plant rolls out about 1,200 units every day in two shifts. The factory produces hatchbacks Swift and A-Star and sedans DZiRE and SX4.

While diesel versions of Swift and DZiRE at present have an waiting period of 3-4 months, customers are waiting for up to one and half months to take the delivery of SX4. The A-Star is MSI's flagship export model.

"Export is also likely to be impacted if the strike prolongs... The stalemate still continues," Bhargava said.

The strike comes at a time when MSI has seen slowing down of sales in the recent past as the auto industry grapples to overcome challenges of rising fuel prices and interest rates.

In May, MSI's domestic sales grew by just 3.9% to 93,519 units from 90,041 units in May, 2010.