Chip shortage to continue impacting Maruti Suzuki's October production

The semiconductor shortage continues to impact production schedules of carmakers in India. Maruti Suzuki, in a stock exchange filing, announced that the company is expecting an adverse impact on vehicle production in October.

Production will be impacted in its manufacturing facility in Haryana and its contract manufacturing company, Suzuki Motor Gujarat Private (SMG) in Gujarat.

Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 60 percent of normal production. This will be close on the heels of the 60 percent production cut seen in September, as a result of the chip shortage.

Domestic sales in the passenger vehicle (PV) segment in India took a beating in August 2021, what with carmakers grappling with the ongoing global semiconductor shortage, which has compelled companies to cut production due to unavailability of electronic chips. Maruti Suzuki’s August sales were down nearly 9 percent to 103,187 vehicles on a year-on-year basis after taking measures to limit the adverse impact of the semiconductor shortage on its production.