Hindered production as a consequence of labour contention in Manesar the past month has caused Maruti Suzuki to move the production plant of its Swift DZire to its Gurgaon facility. A clean slate, devoid of any major industrial dispute is what made Tata Motors choose the Gurgaon plant is the prime reason for it being chosen by Tata Motors. The automobile giant will plan and execute essential changes to the Gurgaon plant very soon. A spokesperson of Maruti informed the media that although the production of DZire is being shifted to Gurgaon after some necessary alterations to the existing site, Swift will continue to be manufactured in Manesar.
Swift DZire is the fifth most saleable car in the country after hatchbacks Alto, WagonR, Swift and i10 and is manufactured only at the Manesar plant. However, the two week long worker’s strike in the area cost Maruti a revenue loss of 630 crores. The workers on strike demanded the recognition of a new union, which brought the production to a temporary standstill. Consequently, the waiting period for the car has come to roughly six months.
Until a few months back, Maruti used to produce Swift and the sedan variant of it ‘DZire’ in Gurgaon. But rising domestic demands lead it to shift location of the plant to Manesar. This helped in growth of the sales by 30 percent last financial year. Alongside Swift and DXire, the production plant in Manesar has also been manufacturing the A-Star hatchback and the SX4 sedan. A total of over 3 lakh cars were produced there last year.
As has been confirmed, plans are being chalked out to allocate exclusive plants in Gurgaon and Manesar to specific models of Maruti cars in order to maximize production and boost efficiency. For instance, the production of DZire will be the sole responsibility of the Gurgaon plant while the production of Swift will be controlled entirely by the Manesar unit. Additionally, Swift will undergo a makeover and the refurbished version will be launched in August 2011. Apart from Swift, the Manesar unit will also produce SX4 and A-Star. Maruti has also announced the plans to set up two more plants in Manesar, one of which will be perational from September and the other, next year. The expansion is expectd to bring in profits and increase production to approximately 1.75 million a year.
Swift DZire was launched in 2008 and very soon became the largest selling Sedan in the country. Maruti’s plant in Gurgaon was responsible for the production of the company first car in 1983 and has been unfailingly rolling out the likes of Omni and Gypsy since. The newer cars coming out of the plant include WagonR, Alto, Estilo, Ritz and Eeco. Moreover, Maruti happens to control roughly half of the automobile market in India. Proof being a whopping majority of 1.27 million cars produced by Maruti last financial year.