The Maruti Suzuki car plant at Manesar could soon be opened but under heavy security cover. The Manesar plant has been closed for nearly a month after violent incidents on July 18th resulting in the death of a senior official.
Maruti Suzuki's management has stated that it will resume production at the plant only after it ensures the security of all workers. Police are still investigating the case and have arrested several workers who took part in the violence. The Manesar plant's closure has lead to severe losses to Maruti Suzuki as its best selling cars the Swift and Swift DZire are built here.
With no production for nearly a month, the waiting period of both these cars has increased. Other carmakers have taken this as an opportunity to increase sales of their cars which compete with the Swift and Swift DZire. Maruti Suzuki is staring at the possibility of loosing a large chunk of its market share if it does not resume production.
Looking at this situation, the leading Indian carmaker has decided to re-open the Manesar plant next week. Production will be started in a staggered manner starting with welding and press operations. The company is planning to hire 500 security personnel along with the existing police force which are guarding the facility.
Reports say Suzuki's chairman Osamu Suzuki will be visiting India later this week. It is yet unclear if he will be visiting the Manesar plant.
The Manesar plant has an annual production capacity of 5.5 lakh cars and every day without production will mean 1,700 cars are not built. Maruti Suzuki has said its losses could not be too high as its August inventory level was at 1,10,000 units. If Maruti Suzuki does resume production at Manesar, there will be semblance of normalcy in the town which now has little activity.