The 2011 slowdown in sales activity in the Indian automobile industry has been a nightmare for all the automobile manufacturers both domestic and global. Maruti Suzuki has faced troubles on two fronts, one of which is the industry slowdown and the other is the labor strikes at its Manesar manufacturing plant. Owing to these multiple causes, Maruti Suzuki which is a partially owned Indian subsidiary of the Japanese major Suzuki Motor Corp, has dragged the parent company into bearing losses in terms of decline in overseas car output.
It is a first for Suzuki Motor Corp in 11 years that its global production has taken a hit declining 2.12 percent as the result of a 7 percent drop in the output of Maruti Suzuki in India. The Indian subsidiary reportedly contributes to half of Suzuki’s annual profits. The labor strike at the Manesar facility took on a 4 month period during which the company incurred production loss of 1,06,000 cars in 2011.
According to Mr. S Nakanishi Managing Director Maruti Suzuki India Limited, the company will be taking tough measures to recover lost ground and plans new launches and increase in diesel engine cars in accordance with the demand. Its diesel engine deal with Fiat to supply it with 1,00,000 diesel engines annually till 2014 would enable it to increase production and resultantly boost sales.
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