Maruti to launch Alto amid workers' threat

Neena Haridas in New Delhi

Strike or no strike, business is as usual at Maruti Udyog Limited. At least, that is what MUL managing director Jagdish Khattar would have us believe. Khattar has decided the launch of a new offering to the Indian consumer.

Alto, the new small car from the MUL stable, is slated to be launched on Thursday. The launch is amidst unrest among the MUL employees who are demanding more perks and pension.

Even as the launch is being held a closely guarded secret, sources have confirmed that two versions of Alto -- 800cc and 1000cc models -- will be launched on Thursday.

According to industry sources, Alto will be placed at the lower end of the market between Maruti 800 and Zen. In fact, Suzuki, the Japanese counterpart of the MUL joint venture, has been selling Alto for a long time now. In the European market, Alto is actually the Zen version.

The pricing is expected to give Hyundai Santro and Daewoo Matiz a run for their money. It is learnt that about 3,000 Alto cars are ready for delivery.

Be that as it may, the Maruti Udyog Employees Union has declared that it will continue to strike work and jeopardise production if the management does not meet its demands.

Khattar, refusing to comment on the issue, claimed that "work is as usual and we are going ahead with all our plans."

The union has threatened that it will affect the production of all the models -- including that of Alto.

Speaking to rediff.com, Maruti union general secretary Mathew Abraham, informed: "Our demands are very nominal. We are seeking an increase in perks and old-age pension. Even if MUL is the market leader, it will have to practice normal industry standards of pay and perks. There is no way we are going to give up on our demands. We will resort to hunger strike, stop production, tools-down protests -- all possible methods could be adopted."

The union has been upset with the MUL management for more than a year now. With the government hinting at divestment in Maruti Udyog Limited, the union has risen in protest against the intended sell-off.

Abraham said, "We will make sure that the management takes us seriously."

The current session of the labour campaign began last week with a two-day halt. The MUL management held talks with the union on Saturday, but could not reach a compromise. It is learnt that fresh talks would be held before the Alto launch. The company does not wish to have hurdles in the first lot of the Alto rollout, considering that it is a fresh offering.

Asked about the production halt, Khattar said that it was merely an attempt to reduce inventory as the September season is dull owing to shraadh -- a period during which Hindus do not buy anything.

MUL's market share has dipped from 80 per cent two years ago to less than 60 per cent following the entry of new players from Japan and South Korea.

Maruti posted a 17.5 per cent slide in sales at 31,203 units in August compared to 37,840 vehicles the same month last year. Its market share also fell to 58.6 per cent in August from 65 per cent in the same period in 1999.

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