Maruti Suzuki Expects 60% Drop In September Production Due To Chip Shortage

India's top car maker Maruti Suzuki said on Tuesday that the global chip shortage will hurt production at its plants in the states of Haryana and Gujarat in September. Total production volume across both locations could be around 40% of normal output, it said in a regulatory filing. Top Indian car makers, like their global peers, have been hit by semiconductor supply chain disruptions during the pandemic, which drove up demand for chips used in electronics like computers as people worked from home, and hit output at many automakers.

Also Read: India's Mahindra And Mahindra Flags Production Hit Due To Chip Shortage

The semiconductor supply chain disruptions caused due to the pandemic has affected several carmakers

Tata Motors and Mahindra and Mahindra Ltd have already warned of the impact from rising commodity prices and a global shortage of semiconductors, combined with pandemic uncertainty.

In July, Tata Motors said it expected the chip supply crunch in the second quarter to be greater than in the first, likely resulting in wholesale volumes for its Jaguar Land Rover to be about 50% lower than planned.

Analysts earlier said Maruti was better positioned than rivals as it was not dependent on a single vendor for chips.

However, Maruti Chairman RC Bhargava has indicated the semiconductor crisis was not over and that it is difficult to predict what happens next.

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