Maruti Suzuki labour deadlock at Manesar plant may cause investment crisis

The standoff at the Maruti Suzuki Manesar plant is expected to hit the investment climate in India as the periodic incidents of worker’s unrest and deadlock is ought to affect the country’s image as the safe destination for investors.

Further, if the deadlock continues to prevail for a longer time then it sure will affect the existing slow growth in the domestic car industry by affecting the component manufacturers to a larger extent.

Director General of Society Indian of Automobile manufacturers (SIAM) said that the crisis is not only bad for the Investment climate in the Haryana region but also for the entire country. The periodic strikes and work deadlocks by the workers at the big Auto firms are seen as bigger news in the global market and thus it is alarming for the companies considering investment in the sub-continent.

Maruti Suzuki labour deadlock at Manesar plant may cause investment crisis

He also added that if the respective state governments are not active enough to resolve these issues then it might affect the investment in the sector.

MD at HIS Automotive Deepesh Mathur said that this is a bad message for anyone who is planning to invest in India. These news posts unfriendly image of India amongst investors. It is now seen as unfriendly country with complex labor issues.

The recent problem at Maruti is also expected to contort struggling car industry. Many officials believe that this issue will be creating negative sentiments in the market which could bring down the sales figures further as Maruti accounts for about 45%of the sales of the industry.

Maruti is itself experiencing a loss of about Rs. 90 crores per day due to the current standoff. The worst part is that the firm makes its bestselling models like Swift hatchback and Dzire sedan at this plant.

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