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Maruti Manesar crisis outcome of internal rift: SIT Report

The Special Investigation Team (SIT) probing the violence at Maruti’s care plant in Manesar has concluded that there is no foreign hand in the crisis and there were internal issues that fuelled the violence. Notably, Maruti’s Manesar plant remained closed down for over a month recently after one person was killed in the violence. Following the lockout, production of Maruti Swift and Maruti Swift Dzire besides Maruti A Star and Maruti SX4 were severely hampered. The earlier two are Maruti’s best selling cars. Meanwhile, there is another development from Maruti’s side and that is the launch of the Maruti Alto 800 small car in India.

With the report, the SIT has also clarified that there is no Naxal or any terrorist hand in the crisis that took the life of one person and had injured many others. Following the violence, the police detained 145 persons and have been investigating the brutal murder of the Maruti management employee. In its charge sheet, the SIT also said that it is the internal differences between the employees and the management at the plant that has resulted in the outbreak of violence at the plant.  

Following the lockout and the damage to the plant, Maruti had to immediately lockout the plant on July 18 violence and production of Swift and Swift Dzire could be partially resumed only after August 21. During this time, Maruti continued to book the two cars and promised delivery soon but the waiting period on these cars increased considerably. Meanwhile, Mahindra launched the new Verito and other car makers have also upgraded their cars and thus there was a significant loss to both Swift and Dzire sales. Now that the production is back to normal, Maruti expects that it will be able to shorten the delivery time and will be able to offer these cars in a month’s delivery time.