India's Bajaj Auto sees June, July output hit by strike

MUMBAI, June 26 Wed Jun 26, 2013 5:33am EDT

MUMBAI, June 26 (Reuters) - India's Bajaj Auto expects output at one of its plants in western India to drop by a third in June and July due to an employee strike that began on Tuesday, its managing director told television channel CNBC TV18.

Bajaj expects to make 50,000 motorbikes in June and July each at its Chakan plant compared with the usual 75,000 a month, Rajiv Bajaj said on Wednesday.

Bajaj makes two-wheelers, including its high-end sports bikes, at the Chakan plant, which had an annual capacity of 1.2 million vehicles as of March.

"As opposed to our normal production of 3,000 per day, in the month of June we would be able to do 2,000 and that is because of all the disruptions that have been created internally," Bajaj told the channel, referring to the strike.

Bajaj has 1,500 employees at the plant, out of which 200 came to work on Wednesday, helping resume production, he said. He did not say when he expected production to return to normal. (Reporting by Swati Pandey and Aradhana Aravindan; Editing by Sunil Nair)