Maruti Suzuki hit by chip shortage, September output to be down by 60% 

Passenger vehicle market leader Maruti Suzuki India has, in a regulatory filing, said that its production in September 2021 is likely to take a big hit.

In a statement the company said, “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. 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.”

Maruti Suzuki India’s two plants at Gurgaon and Manesar in Haryana have a combined manufacturing capacity of 1,580,000 while the Suzuki Motor Gujarat plant has a 500,000 units capacity. This adds up to a little over 2 million units per annum (2,080,000) .  All put together, the three plants’ monthly production is estimated at a little over 173,000 units. This means it is likely that around 103,800 fewer units will be produced in September, which marks the onset of the festive season in India.  

This development confirms what FADA president Vinkesh Gulati told Autocar Professional last week. He said due to the sizeable supply-demand mismatch due to the prevailing semiconductor supply chain problem,sales in the festive season will be impacted despite there being a revival of demand.  

On August 30, Maruti Suzuki had confirmed an upcoming price hike in September 2021, across its entire model range. This latest hike, due to rising input costs, will be the third from the carmaker in eight months and a move which could see other players following suit.