MUMBAI: Shares of India's leading car maker Maruti Suzuki India fell nearly two percent on Monday on news that production of cars had stopped at a factory due to a staff walk-out.
Japanese-controlled Maruti Suzuki hit a low of 1,210 rupees ($27) intraday at the Bombay Stock Exchange after workers downed tools at the company's production line at Manesar in the northern state of Haryana.
Media reports said employees were seeking recognition of a new union.
A company source confirmed that the strike has entered its second working day and said talks were on to resolve the issue.
"We will be fair but firm and will not tolerate indiscipline," the source told AFP on condition of anonymity because they are not authorised to speak to the media.
The source said the strike was "illegal", as no notice had been given.
"We have told them that there is an existing union which can deal with their concerns," the source added.
Maruti is India's largest passenger car maker with a 45 percent market share and produces 1,200 cars each day at the Manesar factory.
The firm lost one production shift on Saturday and one on Monday morning, each producing about 600 cars.
Delivery and sales of cars was unlikely to be affected, though, as the company has "ample inventory", the source added.
Maruti sells in excess of 100,000 cars in India each month, including the popular Alto, Swift and A-Star hatchbacks plus mid-sized cars like the Swift Dzire and SX4.
Production at another factory at Gurgaon, also in Haryana state, is unaffected.
Labour problems have previously hit production of automobile makers like Hyundai Motor India and Honda Motorcycle and Scooter India.
Copyright AFP (Agence France-Presse), 2011
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