Maruti Suzuki is one of the leading car makers in India. The market is not going good for the automobile manufacturers these days. It has hit some mighty names in the vehicle world like Tata and Bajaj. This time the crisis has hit Maruti Suzuki. CNN-IBN has revealed that the company has curbed its diesel engine production at its Manesar plant by 1/3rd of its actual capacity. To achieve this they have discontinued the third shift at the plant. As a result 200 workers have been asked to go on an “indefinite” leave.
Maruti Suzuki is one of the most trusted names in the Indian automobile market. This subsidiary of Suzuki, is a part of millions of families. In the year 2012, Maruti had captured 38% of the passenger car market in India. Maruti has a strong line up with Alto, hatchbacks- Ritz, Swift, A- Star, Wagon R and Zen. It also has various sedans in its lineup which are Kizashi, Dzire and SX4, its MPV which is called Ertiga as well its sports car Vitara. It has its representative in almost every car segment in the market.
The Manesar plant is governed by SPIL (Suzuki Powertrain India Limited) which is a subsidiary of Maruti. It has an annual capacity of producing 3 lac diesel engines. The work commences here in 3 shifts. Last year a major conflict had taken place at this plant. In August 2012 the company had dismissed 1800 contract workers and 500 permanent workers. To investigate this matter and help workers seek justice ICLR (International Commission for labour Rights) from various countries had come forward.
CNN-IBN had revealed that Maruti is reducing the engine production and for this it will be stopping its 3rd shift. As a result 200 workers are again left jobless. This is the next big downsizing by the company after 2012 conflict.
The company has aid that it has taken this step due to the falling demand of the diesel engine. The production is already down by a total of 30% in the past 2 months. The company aimed at increasing its diesel car production from 4 lacs last year to 4.65 lacs this year. But looking at the situation now, it seem impossible for the company to reach anywhere near its goal now.
