Maruti Suzuki Cuts Down Production by 8 Percent in August Due to Semiconductor Shortage

As the automobile industry wades through a severe semiconductor shortage, Maruti Suzuki India on Wednesday reported an 8 per cent fall in its vehicle production in August. It produced a total of 1,13,937 units last month, compared to 1,23,769 units in August 2020, the company said in a regulatory filing. In the sub-segment of mini cars, which includes S-Presso and Alto models, the automaker produced 20,332 units during the period under review, compared to 22,208 in the same period last year. The compact cars sub-segment, consisting of WagonR, Celerio, Ignis, Swift, Baleno and Dzire, witnessed the sharpest decline in production from 67,348 units in August 2020 to 47,640 units in August 2021.

However, the production of the sedan ‘Ciaz’ increased to 3,001 units last month from 1,190 units a year ago. The utility vehicle sub-segment, which includes the models Gypsy, Ertiga, S-Cross, Vitara Brezza, XL6 and Jimny, witnessed a rise to 29,965 units last month from 21,737 units in August last year.

The production of Super Carry, the light commercial vehicle, also increased to 2,569 units from 2,388 units in the year-ago period.

The decline in production comes at a time when the automobile industry worldwide is facing a severe crisis of chips.

Last month, the company had said in a regulatory filing that it has been informed by its contract manufacturer — Suzuki Motor Gujarat — that production will be partially impacted in August owing to chip shortage.

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“This is to inform you that owing to the semiconductor shortage situation, the company has been informed by its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG), that production will be partially impacted in this month. SMG will tentatively not carry out production on the three Saturdays (August 7, 14 and 21)," the filing had said.

Besides, the company had said that some of the production lines may see a temporary reduction from two-shift to one-shift operations. Globally, various industries, including consumer durables as well as automobiles and other sub-segments, are facing semiconductor or electronic chip shortages due to high demand.

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