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Tuesday, Oct 04, 2022
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Maruti Suzuki Expects Semiconductor Shortage To Impact Production In December

Maruti Suzuki stated that although the situation continues to be dynamic, total vehicle production in its Gujarat and Haryana manufacturing location could be around 80-85 per cent of normal production.

Maruti Suzuki Expects Semiconductor Shortage To Impact Production In December
Maruti Suzuki Expects Semiconductor Shortage To Impact Production In December
outlookindia.com
2021-11-30T21:18:55+05:30

Automobile manufacturer Maruti Suzuki informed on Tuesday that total vehicle production in its Gujarat and Haryana manufacturing locations would be around 80 to 85 per cent of normal production. In a regulatory filing to the Bombay Stock Exchange, the company attributed the lowered production to the prevailing semiconductor shortage. It mentioned though the situation is dynamic, the shortage could have an adverse impact on vehicle production in December, this year. 

"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 December’21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG) in Gujarat," the company said in the regulatory filing. 

The company had flagged similar concerns, late in October. This was with regards to vehicle production in November. Maruti Suzuki's production numbers are expected to be revealed this week. Automobile manufacturers, as per standard practice, reveal their production numbers of the previous month on the first day of the next month. 

Maruti Suzuki's total sales in October fell about 24.2 per cent at 138, 335 units. The company had stated that the semiconductor shortage continued to bother vehicle production in October. Nevertheless, the automobile manufacturer added that it sold more vehicles than the sales volumes expected at the beginning of the month. 

Domestic sales in October stood at 112,788 units whereas sales to other original equipment manufacturers stood at 4,225 units. 

In Q2, Maruti Suzuki reported a 65.35 per cent decline in profit on a year-over-year basis at Rs 475.30 crore in the September-end quarter. Revenues in the second quarter fell approx 9.1 per cent at Rs 19.297.80 crore compared to the comparable period, last year.

"An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the Company is making all efforts to expedite deliveries," the company stated in its quarterly report. 

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