Maruti Suzuki Expects Up To 20% Decline In December Production Due To Chip Shortage

Maruti Suzuki expects that the global shortage for semiconductor chips will continue to have an adverse impact on vehicle production. The company estimates that the total vehicle production could be around 80 to 85 per cent of normal production numbers.

By Seshan Vijayraghvan

1 mins read

Published on December 1, 2021

Highlights

Maruti expects December production to be 80-85% of the normal production
Maruti Suzuki says it is an adverse impact of the global chip shortage
Production at both Haryana and Gujarat plants will be affected

Maruti Suzuki India, the country's largest car manufacturer by volume, has announced that its total vehicle production for the month of December 2021 could go down by as much as 20 per cent. According to a regulatory filing on the Bombay Stock Exchange (BSE), Maruti Suzuki expects that the global shortage for semiconductor chips will continue to have an adverse impact on vehicle production. Vehicle production is expected to take a hit at both Haryana, and at the company's contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG) in Gujarat. Maruti Suzuki estimates that the total vehicle production could be around 80 to 85 per cent of normal production numbers. In its official filing, Maruti Suzuki India said, "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 2021." The company further added, "Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 80 per cent to 85 per cent of normal production." Also Read: Maruti Suzuki Production Drops 26% In October 2021 Due To Chip Shortage In October 2021, Maruti Suzuki India witnessed a 26 per cent decline in vehicle production, and a drop of 51 per cent in September 2021 Also Read: Maruti Suzuki Production Down By 51% In September 2021 Due To Chip Shortage Earlier in October 2021, Maruti Suzuki India witnessed a 26 per cent decline in vehicle production, which for that month stood at 134,779 units. The impact was much higher in September 2021, when the company's total production fell by over 51 per cent to just 81,278 units. While the company's production numbers for the month of November are yet to be out, the company had earlier said that it expected a decline of up to 15 per cent. The global shortage for semiconductors continues the affect the entire auto industry. In October 2021, the total production of Passenger Vehicles, Three Wheelers, Two Wheelers and Quadricycles stood at 22,14,745 units. Compared to the 2,830,844 vehicles produced in October 2020, vehicle production saw a YoY drop of nearly 22 per cent.