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Jul 30, 2012, 06.03 PM IST
Grappling with labour woes at its Manesar unit, Maruti Suzuki is considering hiking production of diesel vehicles at its Gurgaon plant. Sources told CNBC-TV18 the plan is to try and reduce the waiting period on Ritz, Eritiga and Eeco range of four-wheelers.
The auto major is reviewing the market demand for Ritz and other diesel vehicles in produced at Gurgaon, in the backdrop of severe supply woes and a slump in market share and sales as a lockout at the key Manesar car factory enters its second week, threatening a replay of a dismal 2011 when labour unrest battered volumes and profit.
The shutdown of the factory, which suppliers and analysts expect to last at least a month at a daily cost of USD 15 million in lost production, is likely to hobble operations for months to come, hampering the carmaker's performance in India's key October sales rush for a second straight year.
Maruti's share of the passenger car market fell 8 percentage points to 40% by the time the strikes ended. That had recovered to 44% in the April-June period of this year, but a similar slide looms.
Meanwhile, the Gurgaon plant has a capacity for ramp-up of diesel car production. Sources say the Eritiga production was impacted due to short supply of key components. Ertiga has a waiting period of six-seven months.
Maruti is in touch with concerns vendors to increase production. Currently, Maruti produces around 400 units a day of Ertiga and around 300 units a day of Ritz and Eeco cars.
Sources say the company will give new projections for Ritz in the coming weeks.
Shares of Maruti Suzuki have plunged more than 9% since it announced the shutdown of its Manesar plant on July 18, however, they have more than decent return of over 20% this year.
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