Bengaluru: maruti suzuki Global chip shortages slowed production and higher raw material costs eroded margins.
Carmakers, which have closed plants or operated at reduced capacity during the height of the pandemic, have found themselves competing against the consumer electronics industry for chips that are a key component in electronic devices.
“The production was disrupted due to a global shortfall in the supply of electronic components, leading to an estimated 90,000 units not being produced,” Maruti, owned by Japan’s Suzuki Motor Corp, said in a statement.
However, demand was strong, and the carmaker said it had more than 240,000 pending customer orders at the end of the third quarter.
Supply chain disruptions in raw material prices and shipping costs have also dented profit margins for companies looking to recover from the impact of the pandemic.
Car makers have tried to pass on some of these costs to customers to reduce the blow. Maruti hiked prices at least four times last year.
Maruti, which sells every second car in India, said unit sales fell to 430,668 vehicles from 495,897 cars a year ago.
Profit stood at Rs 10.11 billion ($135.43 million) for the three months ended December 31, compared to Rs 19.41 billion a year ago.
Total revenue from operations fell 1% to Rs 232.46 billion. ($1 = 74.6525 Indian Rupee)
Carmakers, which have closed plants or operated at reduced capacity during the height of the pandemic, have found themselves competing against the consumer electronics industry for chips that are a key component in electronic devices.
“The production was disrupted due to a global shortfall in the supply of electronic components, leading to an estimated 90,000 units not being produced,” Maruti, owned by Japan’s Suzuki Motor Corp, said in a statement.
However, demand was strong, and the carmaker said it had more than 240,000 pending customer orders at the end of the third quarter.
Supply chain disruptions in raw material prices and shipping costs have also dented profit margins for companies looking to recover from the impact of the pandemic.
Car makers have tried to pass on some of these costs to customers to reduce the blow. Maruti hiked prices at least four times last year.
Maruti, which sells every second car in India, said unit sales fell to 430,668 vehicles from 495,897 cars a year ago.
Profit stood at Rs 10.11 billion ($135.43 million) for the three months ended December 31, compared to Rs 19.41 billion a year ago.
Total revenue from operations fell 1% to Rs 232.46 billion. ($1 = 74.6525 Indian Rupee)
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