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Last week’s strike by workers at Maruti Suzuki’s Manesar facility has had more implications then we thought. Other than the huge production and revenue loss, the company is now faced with capacity issues leading to a delay of the all new Swift. The new 2011 Maruti Swift was expected to be launched in India by July, with a stockyard even getting one! However, now the new Maruti Swift has been delayed by a full quarter leading to a October launch. The current Swift itself commands a huge waiting period and the recent strike has just accentuated it further.
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The company manufacturers over 1 lakh units every month but due to the production loss, it would manage only 65000 units. Further more, the company is running over capacity already so there are very slim chances of recovering loss production by increasing capacity. All this is only good news for rival automakers like Honda and Toyota who are entering the hatchback segment with the Brio and Etios Liva respectively.
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