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Home >Companies >News >Maruti Suzuki production dips in August due to chip shortage

Carmaker Maruti Suzuki India on Wednesday said that its total production in the month of August plunged by 8% to 1,13,937 units as compared to 1,23,769 units on a yearly basis on the back of semiconductor shortage impacting its manufacturing schedules. 

"Production volume of the company in August 2021, was affected due to electronic components shortage," the auto major said in an exchange filing on Wednesday. Shares of Maruti Suzuki were trading over 1% lower at 6,780 per share on the BSE in afternoon deals.

The total passenger vehicle production stood at 1,11,368 units last month, as against 1,21,381 units in August 2020 whereas Production of mini cars comprising Alto and S-Presso models stood at 20,332 units last month as against 22,208 units a year ago. Similarly, manufacturing of compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno and Dzire, declined to 47,640 units from 67,348 units earlier.

Maruti had earlier said it expects its total vehicle production in September across its plants in Haryana and parent Suzuki's unit in Gujarat to be just 40% of the normal output due to the semiconductor shortage. The company's production capacity at Gurgaon and Manesar plants in Haryana is around 15 lakh units per annum, while Suzuki Motor Gujarat (SMG), a 100% subsidiary of Japan's Suzuki Motor Corporation, has an additional installed production capacity of 7.5 lakh units per annum.

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 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.

 

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