Maruti Suzuki stated in a notification to the Bombay Stock Exchange that the prevailing chips shortage will impact the automobile production at its Gujrat and Haryana plants in December this year. The production will be around 80-85% of its normal rollout.
“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,” said the company in a regulatory filing.
Maruti Suzuki like others faced the chips shortage for several months in row. It stated in October that the production will be hampered due to chips shortage in regards to the month of November. The production will be 80-85% of its normal capacity.
Semiconductor chips are important components of vehicles. The facilities like navigation, infotainment, and traction control, all are dependent on chips. The base models use fewer chips than the premium models with advanced safety and entertainment features.
The total sales fell about 24.2% at 138.335 units in October, domestic sales stood at 112.788 units. The company said that it sold more units than expected at the beginning of the month.
“An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the Company is making all efforts to expedite deliveries,” the company stated in its quarterly report.
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