Semiconductor shortage disrupts production at Maruti’s Gujarat plant

by Shahkar Abidi 04 Aug 2021

File image of Maruti Suzuki's subsidiary, Suzuki Motor Gujarat plant. It achieved the 1 million unit milestone in October 2020.

The production at Maruti Suzuki's contract manufacturing plant in Gujarat will be partially impacted in August as a result of the semiconductor shortage. There will be no production of August 7, 14 and 21 and some of the production lines may see temporary cut to 1 shift instead of two.

As per a regulatory filing on the exchanges, “As the situation is dynamic and uncertain, the company will monitor and take a day-to-day decision on models, lines or shifts to optimise resources for maximum efficiency." 

Suzuki Motor Gujarat (SMG), a subsidiary of Suzuki Motor Corporation supplies fully built cars to Maruti Suzuki for its domestic and export market needs. In October 2020, SMG became the fastest production site for the passenger vehicle major to achieve accumulated automobile production of 1 million units.  The total production capacity  at SMG’s Plant A, B and C is over 750,000 units. 

Globally, the semiconductor shortage is leading to headwinds across the automotive industry well into the second half of 2021.  As reported earlier by Autocar Professional, the problem stems from increased demand for personal computers, tablets and smartphones at the height of the Covid-19 pandemic, which largely diverted supply away from the automotive sector. A passenger vehicle typically uses around 1,000 semiconductors and any slowdown in the supply chain means manufacturing operations can come to a grinding halt.

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