India’s largest car manufacturer Maruti Suzuki is considering remedial options as the production of the Swift and the Swift DZire car models has been disrupted by riots and violence at its Manesar manufacturing facility.
The facility contributes to 40 percent of the company’s total output and mainly comprises the Swift hatchback and the Swift DZire. Both car models are among the best selling cars in India as a result of which both have long waiting period for delivery after advance bookings. The company having run out of stock of both car models is now considering options to shift its manufacturing operation to the Gurgaon facility with the aim to recover output and market share in the Indian car market.
With declining profits for the fourth consecutive quarter April-June 2012, the company is now weighing various measures and ways to recoup earnings. The sluggish sales in the Indian auto market are further deteriorating the situation for the company in combination with costlier component imports and devaluation of the Indian rupee.