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Maruti Strike Enters 6th Day; Huge Loss To Govt
There have been three strikes at Maruti Suzuki with the third one entering the sixth day today. The strike has meant there is little production at Maruti's plants. A Maruti Suzuki spokesman has said there has been no progress in Manesar and the plant was still under worker's control.
The strike has spread to Suzuki's parts producers too. Engine production has come to s complete halt and this has affected production Maruti Suzuki's Gurgaon plants too. A company spokesman said production of cars was reduced to by a thousand units on Monday.
With Maruti Suzuki hinting at a complete plant shut down until the situation improves, the government can expect further revenue losses. The government generates revenues through company taxes, tales tax, VAT, excise duty and road tax. The strike has lead to a production loss of 51,375 units and according to industry experts, the government is losing Rs.68,000 per car.
Maruti Suzuki is definitely heading towards more trouble. It will become nonviable for the carmaker to keep its plants open for long considering the mounting losses. The festive season which is usually considered to be very profitable for carmakers has turned out to be a period of long strikes and losses to Maruti Suzuki.
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