Friday, July 27, 2012

Maruti Suzuki Manesar plant lockout enters second week – Swift, and Dzire stock deplete, as share prices dip

Maruti Suzuki Manesar plant lockout enters its second week and the company has to contend with depleting stocks of both their best selling models – Swift and Dzire, both of which are produced at Manesar Plant. 10000 cars of both these models are in transit and there are no more in stock as on date. This situation is likely to continue till such time as production is stalled at Manesar and though the company has not stopped taking in orders, dealers and customers will have to contend with a long waiting period.

Receipt of increased orders and customers willing to wait indefinitely for deliveries only shows the loyalty of customers and this is something that is boosting company spirits in these trying times. As on date Swift has booking order for 55000 units while Dzire has about 65000 bookings with a majority of these being for diesel variants. Company officials have confirmed that production operations will not be shifted to MSIL Gurgaon plant.

Maruti Suzuki has also to contend with a slump in share prices. Shares fell more than 5% in early trading on Monday after the company declared that they did not have any information as to when production operations will commence at their Manesar plant.

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