Maruti Suzuki on Tuesday said it expects production in September to slump to about 40% of the normal level as a result of a global semiconductor shortage that has impacted the supply of electronic components.
“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,” India’s largest carmaker said in a regulatory filing to the stock exchanges.
“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,” it added. In August too, the company had announced that SMG’s production would be partially impacted during the month due to issues related to the semiconductor shortage.
Supply chain disruptions during the COVID-19 pandemic have resulted in a worldwide shortage of semiconductors that have become an integral part of the contemporary automobile. Electronic components are used widely in cars, from engine management systems to improve fuel efficiency to assisted emergency braking.
As per Maruti’s data, the company produced a total of 1,70,719 vehicles in July, including 1,05,345 passenger vehicles and 2,342 light commercial vehicles. Total sales during the month, including exports, was 1,62,462 units.
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