At a time when Maruti Suzuki is facing labour unrest at its Manesar plant in Haryana, the state?s chief minister Bhupinder Singh Hooda is off to Japan for an Indo-Japan invetsor summit to attract Japanese investment in the state. The visit assumes significance as almost 70% of Japanese investment in India is in Haryana, especially in automobiles such as Maruti Suzuki and Honda and in electronics like Panasonic.
?Haryana is Japan?s closest state partner in India and the summit is important in the aftermath of the earthquake that hit Japan,? Deepender Hooda, son of Bhupinder Singh Hooda and a member of Parliament from Rohtak told FE.
?Maruti?s Manesar plant may not be discussed and such a problem has not happened in other Japanese plants. Moreover, the issue is between the company?s management and labour,? he said.
There has been a gradual loss at Maruti Suzuki India and reportedly a deliberate move to sabotage quality on cars produced and industry chamber Assocham recently urged Hooda to intervene in the matter.
Incidentally, the automobile manufacturing sector constitutes Haryana?s primary strength, thanks to the presence of Maruti Suzuki, Hero Honda, Honda Motors and Escorts which have led to the development of a large number of ancillaries in this sector. Also, the Gurgaon-Manesar-Bawal region has been identified as an auto hub by the government. A number of auto and auto component units have already set up base in this hub.
Moreover, Maruti Suzuki is also developing a test track and an R&D facility at Industrial Model Township (IMT) Rohtak in Haryana over 700 acre of land. It will catalyse an investment of around R1,700 crore and is expected to be ready within three years.
Reportedly, Hooda has taken a 36-member delegation to Japan for the summit which also has representatives from the auto sector.