Semiconductor shortage: Maruti Suzuki to cut production by up to 40 per cent in October
Maruti Suzuki has stated in a regulatory filing that it expects production at its plants in Haryana and Gujarat to drop to 60 per cent of capacity in October. This is the second straight month of production cuts for India's largest carmaker, which stated last month that production could be at 40 per cent of its usual output due to the chip crisis.
The company calls this a dynamic situation with production levels expected to be dictated by the supply of electrical components that are currently in short supply. The semiconductor shortage has plagued automakers globally and in India over the past year with production cuts being the norm across the US and Europe. Firms have addressed this crisis by slowing down production, removing certain features temporarily or by stocking fully-assembled vehicles without chips.
For buyers in India, this has resulted in longer waiting periods, and a demand-supply mismatch for the more popular variants of certain models, leading to fewer discounts during the ongoing festive season. The crisis is expected to extend well into 2022 but countries like India, which have previously relied on imports to meet semiconductor needs, are looking at local chip production to meet demand. Aside from initiatives by multinationals, the government is also looking to collaborate with Taiwan to set up chip manufacturing in the country.
Maruti Suzuki's Manesar and Gurgaon plant have a combined production capacity of 15.5 lakh units annually while the Suzuki-owned Gujarat facility can produce 2.5 lakh units per annum.
Also read,
Short Circuit: How the global semiconductor shortage has affected the auto industry
Semiconductor shortage halts auto industry production worldwide
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