Maruti Suzuki has decided to go slow on the new 800cc car project following the violence and plant shut down at Manesar. The country's largest carmaker has decided to delay the work on the Maruti 800 replacement following the murder of a senior official in the hands of workers at the plant.
Maruti Suzuki had previously planned to launch the new 800cc car during this festive season. The new car was expected to replace the ageing Maruti 800 as well as the Alto, which is currently India's best selling car. Maruti Suzuki has now been forced to close its Manesar plant after workers went on a violent rampage attacking executives and damaging property.
The violence at Manesar plant has reached epic proportions and the injured officials are said to be in a shock at the way they were targeted and attacked by workers. The carmaker has said it will not restart production at the plant until everything settlers down.
The repercussions of this week's violence at the Manesar plant will be felt for a long time. Maruti Suzuki's reputation has taken a huge hit and its shares have tanked in the stock exchange. Such repeated strikes have resulted in waiting periods of some of its popular models going up again. Now with reports about the new Maruti 800 being delayed, the cost of the violence has shot up.
Maruti Suzuki has already lost hundreds of crores due to repeated strikes at Manesar. While previous strikes only involved workers not attending work and protesting, Wednesday's incident has been very different. Workers not only stopped work suddenly but also went on to attack executives. One can understand the situation by looking at the number of people who were grievously injured.
More than 100 Maruti Suzuki executives are still recovering from injuries that they suffered on Wednesday. The delay in the launch of the new Maruti 800 is a body blo to Maruti Suzuki which had hoped sales of its small cars would improve soon after the launch of the new 800 cc car.
The Maruti 800 is Maruti Suzuki's first car in India. It was the carmaker's best selling car until the launch of the more modern Alto. Now, the alto is also an aged car after 11 years of its launch. Maruti Suzuki was working on developing a new 800cc car that could replace both these iconic cars. It remains to be seen if Maruti Suzuki will emerge from this issue stronger or not.