Global chip shortage will affect production rate: Maruti Suzuki

02 Sep 2021 CW Team

Indian car manufacturing major Maruti Suzuki told the media that the global ship shortage had affected the production at its plants in Haryana and Gujarat in September.

The overall production volume in both locations can be nearly 40% of the usual output.

Indian carmakers have been hit by the disruptions in the semiconductor supply chain during the Covid-19 pandemic, which hit the demand for chips used in electronic appliances like computers as people worked from home due to the pandemic and hit output at many automakers.

Both the carmakers, Tata Motors and Mahindra Limited, have warned about the impact of the rising price of commodities and a global semiconductor shortage, including the uncertainty caused by the Covid-19 pandemic.

In July, Tata Motors told the media that the chip supply in the second quarter was expected to be higher than in the first quarter. It is likely that the wholesale volumes of its Jaguar Land Rover to be about 50% lower than planned.

Earlier, analysts said that Maruti Suzuki was in a better position than its competitors because the company was not dependent on one vendor for chips. But R C Bhargava, the Chairman of Maruti Suzuki, has said that the semiconductor crisis is not yet over, and it is difficult to predict the future of what will happen.

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