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Maruti may close plant over truck strike
April 16, 2003 13:55 IST
Maruti Udyog Ltd, India's biggest car manufacturer and a unit of Japan's Suzuki Motor Corp, said on Wednesday that it may have to temporarily close its plant due to a nationwide strike by truckers.
"I think after a couple of days we'll have to close down (the plant) because our inventories are low," said Jagdish Khattar, the company's managing director. "If we don't get new supplies, we won't be able to manufacture."
The truckers went on strike on Monday to back demands for stable diesel price rises, exclusion from a planned consumption tax and minimum freight rates.
Maruti's plant is located on the outskirts of New Delhi and has the capacity to produce 350,000 vehicles annually.
It sources manufacturing inputs from different parts of the country that are mainly transported by road. It makes 11 models in India including cars, multi-purpose and utility vehicles.
The firm, poised for an initial public offer by the government later this year, holds more than 54 per cent of the domestic car market and is majority owned by Suzuki. The government owns a 45.54 per cent stake.
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