Strike at Exide puts Hero Honda in catch-22 situation
Hero Honda still hasn't got an optimal reply to the supply issues that the company may face starting next fiscal but the strike at Exide has hit the company at its back. The strike at the plant of the battery maker has added to the problems that the auto majors have been facing in the Gurgaon region.
Notably, before Exide workers' sat on bench, companies like Maruti, Hyundai, Tata Motors etc. have been facing supply issues with vendors operating in the Gurgaon region.
The plant of Exide is situated at Bawal in Haryana with an installed capacity of 16,000 units per day and with the workers refraining from work, it is believed that Hero Honda may face major supply issues. Exide is one of the major suppliers of batteries to the two-wheeler major.
According to sources in the company, it is believed that the two-wheeler maker has an unsold stock of around 5,000-8,000 units that needs batteries to be equipped before it gets in the market. Apart from Hero Honda, Exide also supplies batteries to the sister concern HMSI which has already faced several labour issues after it paved its way in the Indian market.