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Strike Effect: Maruti To Move Production to Gurgaon?
Waiting period of Maruti Suzuki's diesel variants was between one month to four months. The current strike at Manesar has resulted in a production loss of over 11,000 vehicles, a majority of them being diesel cars. This has resulted in waiting period for diesel cars increasing by an additional month.
Maruti Suzuki management believes the increased waiting period will not auger well with customers. Production of the Swift and Dzire was moved from Gurgaon to Manesar in 2009. The current strike might lead to production being shifted back to Gurgaon. Maruti Suzuki workers at Gurgaon have not joined the strike but have supported the striking workers at Manesar.
A company executive said the company was preparing a strategy that would de-risk production in India. He said Maruti Suzuki was planning to increase production at Gurgaon although the plant was already working at full capacity. A company spokesman has said moving production of cars from Manesar to Gurgaon might not be possible due to the high cost of relocation. Meanwhile talks between striking workers at Manesar and the Maruti Suzuki management failed on Wednesday prolonging the strike that has crippled the Indian carmaker.
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