INDIA: Supplier body condemns "anarchy" of Maruti Suzuki plant riot
India's Automotive Component Manufacturers Association (ACMA) has strongly condemned last week's violence at Maruti Suzuki's Manesar plant as fears grow the region's supply chain could be severely impacted.
There are believed to be hundreds of local suppliers in the Haryana region of northern India, but Maruti has imposed a total lock-out at the Manesar plant, which was subject to an arson attack that left the human resources manager dead and 100 staff hospitalised.
"We are dismayed and shocked at such display of brutality," said ACMA president, Arvind Kapur. "It is outrageous and depressing a company renowned for excellence in human relations, quality and productivity is ravaged by such anarchy.
"While the entire Indian economy is passing through turbulent times, the automotive industry has been a beacon of hope for industrial growth and job creation in the country. Unfortunate incidents as these not only impact the competitiveness of the automotive sector, but also severely dent the image and the growth prospects of the nation. Under no circumstances should anti-national activities as these take precedence over collective civil bargaining and the laws of the land should prevail."
The Manesar factory assembles Maruti's top-selling Swift and Dzire models, producing around 1,600 vehicles worth US$12.5m a day, according to analysts, but the shut-down is certain to cause disruption to suppliers, many of whom are located nearby.
"Suppliers will get impacted as we are not buying the material from them," a Maruti Suzuki India spokesman told just-auto from Delhi.
"They are also living in the same [geographical] environment and the fear is bothering them."