Maruti Suzuki expects a global shortage of semiconductor chips to continue to negatively impact vehicle production. The company estimates that total vehicle production will be about 80-85% of normal production.
Maruti Suzuki expects car production to be hit at both Haryana and Gujarat plants
Maruti Suzuki India, the nation’s largest car maker, has announced that total car production in December 2021 could be reduced by as much as 20%. According to a regulatory filing on the Bombay Stock Exchange (BSE), Maruti Suzuki expects a global shortage of semiconductor chips to continue to negatively impact vehicle production. Vehicle production is expected to be hit by both Haryana and its contract manufacturer, Suzuki Motor Gujarat Private Limited (SMG) in Gujarat.
Maruti Suzuki India said in an official announcement, “We expect that the supply restrictions on electronic components due to the shortage of semiconductors will adversely affect automobile production in December 2021.” “The situation is very dynamic, but it is currently estimated that total vehicle production at both locations will be about 80% to 85% of normal production,” the company added. ..
Also read: Maruti Suzuki production will decline 26% in October 2021 due to chip shortage
Also read: Maruti Suzuki production fell 51% in September 2021 due to chip shortage
At the beginning of October 2021, Maruti Suzuki India saw a 26% drop in vehicle production, with monthly production of 134,779 units. The impact was much greater in September 2021 and the company’s total production fell by more than 51% to 81,278 units. The company’s production in November hasn’t been announced yet, but the company previously said it expects a drop of up to 15%.
The global shortage of semiconductors continues to affect the entire automotive industry. In October 2021, the total production of passenger cars, tricycles, motorcycles and four-wheeled vehicles was 22,14,745 units. Compared to the 2,830,844 vehicles produced in October 2020, vehicle production fell by nearly 22% year-on-year.
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Maruti Suzuki expects December production to drop by up to 20% due to chip shortage
Source link Maruti Suzuki expects December production to drop by up to 20% due to chip shortage