India’s largest car manufacturer Maruti Suzuki has announced that it will delay the scheduled launch of the new 800cc small car on Diwali to a later date due to the production disruption at its Manesar facility as a result of labor unrest and riots on July 19, 2012. The news about rescheduling the launch of the new car was confirmed from Mr. Shinzo Nakanishi Managing Director Maruti Suzuki India (MSI).
Mr. Nakanishi added that the launch may go as scheduled in case the company is able to recover from its losses due to production disruption. The new car to be launched is stated to be more fuel efficient than the existing Alto small car and would be more expensive too. The commercial production of the 800cc car model was to commence from July or August 2012 at the Gurgaon facility of the company.
Maruti Suzuki like other automakers in the industry is also marred with problems of over stocking of inventory due to low demand for the petrol car models. The company had halted production for three days in the month of May 2012 in order to prevent inventory pile-up.