BackMaruti Suzuki sees production impact from semiconductor shortage at Gujarat, Haryana plants
The total production volume across both Haryana and Gujarat could be around 40% of normal output, Maruti Suzuki said in a regulatory filing
PremiumThe country's top car maker Maruti Suzuki expects production at its plants in the states of Haryana and Gujarat to be impacted next month due to a shortage of semiconductors, it informed on Tuesday.
The total production volume across both Haryana and Gujarat could be around 40% of normal output, Maruti Suzuki said in a regulatory filing.
The global shortage of semiconductor chips is hurting automobile production and may impact August-September wholesales, even as demand is recovering well from the second wave of the pandemic, a report said.
In August, the registration of passenger vehicles and tractors saw a 41-44 per cent uptick over the same period of 2019, and truck registrations are also improving despite a 15 per cent decline in the months over August 2019, financial services firm Jefferies said in its report.
However, two-wheeler registrations fell 19 per cent in August over the same period of 2019, it said.
Noting that chip shortages are hurting production and should impact August-September wholesales, Jefferies said, "companies such as Maruti, Bajaj and Royal Enfield have seen an increased impact in the September quarter."
The recent pandemic-related lockdown in Malaysia might add to the constraints, it added.
Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the Company is expecting an adverse impact on vehicle production in the month of September in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Pvt. Ltd. (SMG) in Gujarat," Sanjeev Grover, Vice President and Company Secretary, said in a statement.
"Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 40% of normal production," he added.
Car makers globally have been hit by multiple semiconductor supply chain disruptions during the Covid-19 pandemic and face stiff competition from the sprawling consumer electronics industry for chip deliveries.
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic items.
The shortage of such a crucial component has been impacting the automotive industry globally along with other industries, forcing them to cut down on production.
The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.
With agency inputs
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
