Maruti Suzuki’s A-star’s export orders are likely to meet a delay due to the labor unrest at the company’s Manesar plant.
Manesar, Suzuki’s sole global manufacturing base for the A-star, exports the vehicle to many countries across the world including markets in the Western and Eastern Europe, South America, Africa and other parts of Asia.
The company’s Manesar plant has been witnessing a labor strike for the past few days which has halted the production of all models except the new Swift. A top company official told the Business Line that there is bound to be an impact on exports, especially on the existing orders. These orders are usually received six months in advance and around 2-3 shipments are dispatched every month.
The company has an agreement with Nissan, under which the latter will sell Maruti Suzuki’s A-star in the European market as the ‘Pixo.’ As a part of the three year agreement, Maruti has to supply a minimum of 35,000 units for the current fiscal year 2011, out of a total of 1.05 lakh units.
