No festive cheers for car makers, Oct sales disappoint
The festive season failed to bring cheers to major car makers in India as sales remained more or less flat in October, with market leader Maruti Suzuki India witnessing its biggest ever fall in over 10 years due to labour strike at its Manesar plant.autos Updated: Nov 01, 2011 20:00 IST
The festive season failed to bring cheers to major car makers in India as sales remained more or less flat in October, with market leader Maruti Suzuki India witnessing its biggest ever fall in over 10 years due to labour strike at its Manesar plant.
The auto industry, which is going through a phase of sluggish demand this fiscal due to rising interest rates and high fuel prices, was looking with optimism at the festive season but it proved to be vain.
The country's largest car maker Maruti Suzuki India (MSI) and Hyundai Motor India Ltd (HMIL) witnessed 52.16% and 4.95% fall in their sales, respectively. Tata Motors' sales rose marginally by 2.64% in October.
MSI saw sales of 51,458 units in the domestic market last month, a 52.16% fall from 1,07,555 units in the year-ago period.
The last time MSI witnessed such a steep fall was when it suffered a 3-month labour strike at its Gurgaon plant from November 2000-January 2001.
"The labour unrest at company's Manesar plant during October 2011, adversely impacted the production and sales numbers. The company lost production of over 40,000 units (Gurgaon and Manesar) in the month," the company said.
The Manesar facility rolls out MSI's high volume compact car Swift, which currently has undelivered booking orders for about one lakh units. The plant also produces hatchback A-Star and sedan SX4.
The simultaneous strike at Suzuki Powertrain, which makes engines and transmissions, in support of MSI's Manesar plant's workers, affected production at the Gurgaon facility also.
First Published: Nov 01, 2011 19:58 IST