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Market leader Maruti Suzuki India, which sells every second car in India, saw sales of its two models advance by a mere 3.2 per cent to 4,27,183 in 2017-18, while that of sub-four metre sedan and sport utility vehicles (SUVs) jump 28 per cent and 107.3 per cent, respectively.

Even though electric two wheeler (e2W) companies saw a slight recovery in July of 12 per cent with 49,518 registrations - after a wash out in June because the government slashed the FAME 2 subsidy by a third - registrations are still lower for the second month in a row compared to April FY24. The slow pace has raised doubts about whether the registrations will reach anywhere near either Niti Aayog's ambitious target of 2.4 million vehicles in FY24 or whether they will be closer to the trimmed down industry expectation of around one million. In June, e2W registrations plunged to a mere 44,253, the worst month in more than a year, as companies hiked scooter prices.

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Statistics, however, tell a story of effective prevention. "If one were to isolate one single factor (contributing to industrial strife), it is the resistance (of employers) to the right to organise," says J John, executive director of Centre for Education and Communication and editor of Labour File, a bimonthly journal on worker issues. "In many cases, there is no demand for even a wage rise; just to form a union" (Das 2011). He felt that almost every strike at the numerous factories in the Gurgaon-Manesar region in the past decade had started with companies refusing to recognise the demand of workers to form a union. From the strike at Maruti in 2000 to the one at Honda Motorcycles and Scooters India (HMSI) in 2005 and the one at Rico Auto in 2009, the one common demand was to form a union. He backs it with data on unions in Haryana. The number of registered factories in Haryana nearly doubled from 5,652 in 1991 to 10,474 in 2010, while the number of registered (permanent) workers grew from 3.5 lakh in 1993 to more than 7.7 lakh in 2010 (based on data from the State Labour Department). The increase in the number of contract workers has been vastly more. In comparison, in the past two decades, the number of registered trade unions has grown by merely 400 to 1,540 (money.control 2011). In any case the problem in Maruti was a recurrent one, and its roots go back to 2000.

To what extent is this strategy successful? Success has been achieved in terms of market share, quality, launch of new models, profitability. But have these removed IR problems? In a highly competitive market, where many Indian companies have not had any IR problems for 15 to 20 years, MSIL appears to have a recurrence of these periodically resulting in production loss, and more importantly, in image loss. Or, is that a calculated risk MSIL is prepared to take? As the CEO said in a blaze manner, a mere few thousand production units lost is negligible for a company selling over a million units annually. But can it ensure that these risks will remain contained over time and not blow into large proportions? There is also the possibility that the state government may not remain as compliant. Can a multinational not look upon a union in India as a partner in its quest for higher productivity and competitive edge, like several Indian companies?

Maruti Suzuki Strike: How India Inc's New Age Unions Are Pushing for Reforms (2011), indiatimes.com/features/corporate-dossier/maruti-suzuki- strike-how-india-incs-new-age-unions-arepushing-for-reforms/articleshow/ 9403904.cms, accessed 20/8/11, 17dc91bb1f