Maruti Suzuki will raise production of its best-selling hatchback, Swift, by more than 40 percent. It will also shift its entire output to the Manesar factory after a month-long industrial unrest, that caused the country's largest carmaker a loss of 660 crore, came to an end.
In the next few weeks, the company will start full-fledged manufacturing operations at its second plant in 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 said. The company will also resume normal production of SX4 and A-star models.
Maruti‘s entire Swift production process will now take place in 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 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 of months for Swift, which has got bookings of 1,08,000 units. The current waiting period for the hatchback is eight to nine months.
With the recent developments, the dealers are a relieved bunch. 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 percent-20 percent 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, MD, Fort Point.
On Saturday, the deadlock between striking workers and the Maruti management ended after workers agreed to sign the “good conduct bond”.