Maruti Suzuki Suspends Production At Two Plants

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Gurgaon: Country’s leading car manufacturer, Maruti Suzuki India has announced a temporary production suspension at the Manesar and Gurgaon plant. The company today issued an official statement saying that owing to an unfortunate fire accident at the Manesar facilities of its top supplier, Subros Limited, supplies of components from that plant has been disrupted. As a result, the company will have to temporarily shut down production of cars at both its facilities effective May 30, 2016.

The fire accident at Subros Limited’s plant took place on Sunday May 29 and is believed to be a major one. In its official statement Maruti Suzuki India said, “Subros Limited and Maruti Suzuki are jointly assessing the extent of damage to essential equipment. We are also examining the options available to start supply of components from other facilities. Production will resume as soon as components become available.”

Sources from the company have revealed that the halt in production will impact all the models that are on sale. Moreover we have also been informed that company is still assessing the damage caused by the fire and thus were not be able to tell us as to how long will the suspension last. Subros Limited is currently the largest supplier of air conditioning system for Maruti Suzuki India. In fact some of the other carmakers to whom Subros supplies air conditioning system include – Tata Motors, Mahindra and Mahindra, Renault Nissan Alliance, and Force Motors among others.

It is quite certain that this recent incident of fire will affect supply to other manufacturers as well. Although none of the other car manufacturer have announced any issue with production yet. That said we will be able to see the effect of this production halt in the company’s future sales report. Apart from Maruti Suzuki’s top selling models – Alto 800 and K10, Swift, Swift DZire, Baleno, Wagon R among others, sales for the recently launched Vitara Brezza will also take a hit.

 

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