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Thursday, March 07, 2013

By Manoj Kumawat

Mahindra Scorpio, Bolero, Xylo and Verito production hit as Nasik strike enters third day

It seems that Mahindra is going through a tough phase. Where on the one hand, the government has raised the excise duty on full grown SUVs and commensurately the car maker had to raise the price of its SUVs including the Mahindra XUV 500. Now, as per reports, the Mahindra workers at the Nasik plant are at a strike for the third day today. This has adversely impacted the production of Mahindra Scorpio, Mahindra Bolero, Mahindra Xylo and the sole sedan Mahindra Verito. As per the information, over 3000 workers demand the revocation of the suspension order of a union leader. It is highly expected that there will be a compromise between the Mahindra management and the on-strike workers today after the two have been called by the Labour commissioner for a meeting.

Mahindra Scorpio Pictures

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Notably, the suspended union leader Praveen Shinde was on hunger strike demanding increase in wage of the employees. Taking a strict action against him, the Mahindra management had issued his suspension and that has stirred the strike at the plant. The strike has already two days old and it is its third day and till now the car maker has suffered a production loss of over 500 cars. The production loss will not impact the supply of these above mentioned cars as the car maker already has three-week stock of these cars. But if the strike goes on then there may be an immediate need to address the production loss issue. Meanwhile, the recent price rise of Mahindra SUV as well as the low sentiment in the market has to an extent literally paused the demand for cars and every other car maker is in a crisis situation.

Mahindra XUV 500 Pictures

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But if these models fall in short supply this will adversely impact the car maker to a great extent. The reason behind this is that these cars are the best selling SUVs by Mahindra and the car maker cannot afford to have these out of production. In addition to the SUVs, the production of Verito sedan is also hit which could further dampen its prospects in the segment if it’s waiting time increases.

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