It is uneasy to digest the fact that India's largest car maker Maruti Suzuki has been encountering the worst ever breakdown, in the history of the auto market, which has left the production process limping, for a long time now. With Haryana and Gurgaon plants bearing the brunt of the indefinite strike, Maruti has mulled upon shifting its operations outside the disturbance-prone areas. In a bid to take things in control, atleast to some extent, the company has sped up its moves to hunt down for a place to set up its new facility. For that matter, Maruti Suzuki is possibly eyeing the business-friendly state of Gujarat that has transformed into an auto hub in the recent times.
Sources say that the Japanese auto maker could not afford to face the serious interruptions in production, further, caused due to the labour problems at Manesar, and thus, planned to take steps at a larger scale. The company wants to finalize its expansion plans beyond Haryana, at the earliest, going against the wishes of the government.
Maruti car sales has already been dented severely and what adds to the problems of the firm is the low market demand for its products, owing to frequently changing delivery schedules, making the company float in troubled waters.
In the recent development, Suzuki Chairman Osamu Suzuki met Gujarat Chief Minister Narendra Modi on 8th September, following the first peace agreement which rendered no solution whatsoever. Moreover, in the wake of the second labour strike, the company's management has confirmed to approve the proposal to invest Rs. 18,000 crore, including Rs. 6,000 crore by auto ancillaries, in Gujarat. The plant would be covering an area of over 1,000 acres, providing a capacity to produce two million units.
Maruti Chairman R. C. Bhargava declined to comment on the way in which the Haryana government has responded to the detrimental crisis, but did not hesitate in discussing about the present situations prevailing at the malfunctioning plants. "The labour here is militant, and if there is no improvement in the situation, this belt will surely suffer industrially. Not only Japanese investments, but investment plans of other countries and companies will also be hit," Bhargava was quoted as saying.
The fresh labour unrest at Manesar have exposed the company to an untoward phase, which has led the firm lose its presence in the 'comfort zone'. According to company insiders, "There is clearly a need, an urgency, to look for a new production hub."
It is important to note that back in 2009, Haryana Chief Minister Bhupinder Singh Hooda announced at public gathering that he had been assured by Osamu Suzuki that all Maruti's expansion plans would be considered "only in Haryana". The public event witnessed the presence of the current Maruti Managing Director Shinzo Nakanishi too. Maruti's inclination towards Gujarat is seen as a move to bring about a strong measure that can compensate the exorbitant loss, and act as substitute for the existing plant for production purposes.
Thus, Gujarat can possibly emerge as a silver lining for the company that has been crippled by the ongoing deep-rooted menace.
