Chip shortage impact: Maruti Suzuki’s production in September crashes 51% – ET Auto


New Delhi: The country”s largest carmaker Maruti Suzuki India said its total production in September declined by 51% on a yearly basis to 81,278 units as semiconductor shortage impacted its manufacturing schedules.The company had produced a total of 166,086 units in the year-ago period, Maruti Suzuki India (MSI) said in a regulatory filing.

“Production volume of the company in September 2021 was affected due to electronic components shortage,” the automajor noted.

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic items.The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

MSI said total passenger vehicle production stood at 77,782 units last month, as against 161,668 units in September 2020.

Production of mini cars comprising Alto and S-Presso models stood at 17,163 units last month as against 30,492 units a year ago.

Similarly, manufacturing of compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno and Dzire, declined to 29,272 units from 90,924 units earlier, MSI said.

Production of utility vehicles — Gypsy, Ertiga, S-Cross, Vitara Brezza and XL6 — also dipped to 21,873 units last month from 26,648 units in the corresponding month of 2020.

The company also reported an decrease in the production of its Eeco van at 8,025 units last month as compared with 11,183 units in September 2020.

MSI said production of its light commercial vehicle Super Carry stood at 3,496 units last month, as against 4,418 units in the year-ago month.

On September 30, the auto major had announced that it was expecting total vehicle production in October at two of its plants to be around 60% of normal levels due to a global chip shortage.The company’s production capacity at Gurgaon and Manesar plants in Haryana is around 15 lakh units per annum.

Besides, Suzuki Motor Gujarat (SMG), a 100% subsidiary of Japan”s Suzuki Motor Corporation, has an additional installed production capacity of 7.5 lakh units per annum.

Due to the massive inflation in raw material prices, automakers are focussing on making high margin models and have passed on some of the costs to customers. All top carmakers in India, including Maruti, Tata Motors and Mahindra, have increased prices multiple times in 2021.

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