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Chip shortage: Maruti Suzuki expects production to drop in Dec

Chip shortage: Maruti Suzuki expects production to drop in Dec

Maruti Suzuki has estimated that the total vehicle production volume across both locations could be around 80 per cent to 85 per cent of normal production in December 2021

The semiconductor shortage has been adversely impacting production at Maruti facilities for several months now The semiconductor shortage has been adversely impacting production at Maruti facilities for several months now

Maruti Suzuki India (MSI) stated on Tuesday that production at its Haryana and Gujarat plants will drop in December owing to supply constraint of electronic components due to the global semi-conductor shortage.

The firm has estimated that the total vehicle production volume across both locations could be around 80 per cent to 85 per cent of normal production in December 2021.

"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," noted the automaker in an official statement.

The semiconductor shortage has been adversely impacting production at Maruti facilities for several months now. In October, the firm had said that November production at both its facilities locations in Haryana would be around 85 per cent of normal roll-out.

Semiconductors or chips are crucial components of vehicles, which facilitate a wide array of features such as navigation, infotainment and traction control. Premium cars with advanced safety and entertainment features need more chips compared with the base models.

According to CRISIL Ratings, the global shortage of semiconductors will moderate the growth in India's passenger vehicle (PV) sales to 11-13 per cent in the ongoing financial year, 400-600 basis points lower than what it would have been without the scarcity.

Meanwhile, Maruti Suzuki announced that starting November 30, the prices of all non-cargo variants of EECO will be increased by Rs 8,000 due to the introduction of the passenger airbag.

Also read: Maruti Suzuki sees adverse impact of semiconductor shortage on production in November

Also read: Maruti Suzuki to increase prices from today; check details