Carmarker's violence infects suppliers
India - Following the suspension of work at Maruti Suzuki's Manesar plant in New Delhi, more trouble has been brewing for the company and the industry.
The violence at India's largest carmaker has had a knock on effect for its component suppliers. According to Press Trust of India, suppliers may be forced to cut production as demand struggles, which could possibly see contract workers facing a layoff.
Vinnie Mehta, executive director of Automotive Component Manufacturers Association of India (ACMA), told the news source the overall automotive market is experiencing a slowdown because of Maruti's indefinite shutdown.
One of its suppliers, Fiat has been supplying diesel engines to the company since the beginning of the year in order to meet demand. As such, Fiat could see a sharp decline in production in light of Maruti's current situation.
Nevertheless, the India-based carmaker is looking to restore output, as Maruti Suzuki makes the decision to shift manufacturing to its Gurgaon plant, Bloomberg reported.
Additionally, the auto manufacturer is also looking to hire workers to prepare for the production increase. However, no decision has been made as yet, according to Times of India.
The company has since reported yet another decline and is fervently looking to boost output to revive its business.
Earlier this month, violence broke out amongst the workers and management at Maruti's Manesar plant, resulting in one person dead and several others injured.
Subscribe to ProcurementAsia's biweekly bulletin now!
For exclusive video content, visit Channel P on YouTube.
More quality Lighthouse titles
Managing people? For HR and leadership strategy, Human Resources has it covered.
Get your marketing department up to speed with Marketing, Asia's most read marketing site.
- Maruti Suzuki India