Maruti Suzuki to Raise Output of Swift by 40%

Company to shift entire production to Manesar factory as labour unrest ends

KETAN THAKKAR MUMBAI

    Maruti Suzuki will raise production of its best-selling hatchback, Swift, by more than 40% and shift its entire output to the Manesar factory, after a monthlong industrial unrest that caused the country's largest carmaker a loss of . 660 crore. In the next few weeks, the company will start full-fledged manufacturing operations at its second plant at Manesar.
“This will help us increase the output of Swift to 17,000 units a month from our historical highs of 12,000 units a month,” a senior Maruti Suzuki official told ET. The company will also resume normal production of SX4 and A-star models. Maruti’s entire Swift production will now happen out of Manesar, freeing up capacity at the Gurgaon plant, which was used as a stopgap arrangement during the strike. This will help Maruti save on logistics cost incurred on moving panels from Manesar to Gurgaon for car assembly.
With increased supplies, Maruti Suzuki expects to reduce the waiting time by at least a couple months for Swift, which has got bookings of 108,000 units. The current waiting period for the hatchback is eight to nine months. Maruti is now pinning its hopes on the festival season. “The sentiment is improving. We expect things to get better and expect the festive season to be much better than before,” the official said. Dealers, too, are relieved. Jayendra Kachalia, director at Mumbai-based Navnit Motors, said, “Now we will get relatively more supplies and this will help in reducing the long waiting period.”
Another Mumbai dealer expects 15-20% growth this festive season. “We were expecting a lukewarm festive season. Now with more supplies coming in, we expect much higher sales in the next few months,” said Sandeep Bafna, managing director, Fort Point. On Saturday, the deadlock between striking workers and the Maruti management ended after workers agreed to sign the “good conduct bond”.
As per the agreement brokered by the Haryana government, Maruti will take back 18 suspended trainees. However, it has refused to reinstate the 44 regular employees it had suspended. A ‘no work no pay policy’ would be implemented for the standoff period. The management agreed to bring 10 dismissed workers to the suspended list. The fate of 44 workers would depend on the outcome of an inquiry.