Chip shortage: Maruti Suzuki expects production crisis to continue in November

Maruti Suzuki India (MSI) said the adverse impact on production at its two plants in Haryana and at parent Suzuki’s Gujarat plant will continue into November due to global semiconductor shortages.

Describing the situation as very dynamic, India’s largest carmaker noted in a regulatory filing that as per current estimates the total vehicle production volume at both its facilities locations in Haryana could be around 85 per cent of the normal roll-out next month. Is.

“Due to shortage of supply of electronic components due to semiconductor shortage situation, the company is expecting an adverse impact on vehicle production both in Haryana and its contract manufacturing company Suzuki Motor Gujarat Pvt Ltd (SMG) in the month of November ’21 . ,” MSI said in a regulatory filing.

The company has a production capacity of about 15 lakh units per annum at its Gurgaon and Manesar plants in Haryana.

SMG Gujarat, which supplies vehicles exclusively maruti suzuki, has an additional installed production capacity of 7.5 lakh units per annum.

The company had earlier said that the total vehicle production volume at both the locations in October could be around 60 per cent of the normal production. It had noted that vehicle production in September would be just 40 per cent of its normal production due to a shortage of semiconductor chips.

Earlier this week, MSI reported 66 per cent year-on-year Consolidated net profit decline Feather 487 crore in the second quarter ended September 30, 2021, impacted by the ongoing semiconductor shortage and rising commodity prices.

The company had said that the auto major could not produce around 1.16 lakh vehicles during the second quarter due to lack of electronics component.

The company has over 2 lakh pending customer orders at the end of the quarter for which it is making all efforts to expedite the deliveries.

Semiconductors are silicon chips that fulfill control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.

The use of semiconductors in the auto industry has increased globally in recent times as new models are coming with more and more electronic features such as Bluetooth connectivity and driver-assistance, navigation and hybrid-electric systems.

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