Wednesday, August 18, 2021
By Manoj Kumawat
Maruti Suzuki to Minimize Production Due to Shortage of Semiconductors
The decline in the supply of semiconductor chips has affected the production activities of all the car manufacturers in the entire world. The Indian car market is not an exception to this. According to recent reports country’s leading car manufacturing company, Maruti Suzuki India Limited is going to cut its production activities up to 30% to 40%. As an impact of this cut down the Indo-Japanese carmaker will have to face a huge revenue loss between Rest 2,500 to Rest 3,000 crore. However, it will also affect the sales of popular cars during the festival season. According to an estimate, the company will not be able to manufacture 50,000 to 60,000 of its different models due to this shortage.
According to sources of the company, "Maruti Suzuki was expected to lower its production plans for this year by 5 percent or 70,000-80,000 vehicles. The output cut in August alone would be about three-fourths of that”. Going through this shortage, the company’s contract manufacturing company Suzuki Motor Gujarat has announced to shut down its production activities successively for three Saturdays during the month of August 2021.
The shortage of semiconductor chips has affected the production activities of all the major carmakers. According to sources domestic carmaker Mahindra & Mahindra, MG Motors, and Ford India have cut down the production of their vehicles. Recent reports reveal that home-grown carmaker M&M has put the production 8,000 semi-finished units of recently launched SUV XUV700 at its Chakan plant because of this reason. The sources related to the production unit at Mahindra & Mahindra said,"The plant will receive around 1,000-2,000 Electronic Control Unit (ECU) in September, of which only 500 will be allotted to the XUV700,".
It would be interesting to know that another domestic carmaker Tata Motors has announced to step into the business of manufacturing semiconductor chips. In the words of N Chandrasekaran, Chairman, Tata Group, “The Tata group has already set up a business to seize the promise of high-tech manufacturing for electronics. A domestic electronics industry could unlock $1 trillion in GDP and create millions of jobs.”
