Chip shortage: Maruti Suzuki announces an 8% drop in production in August

NEW DELHI: The country’s largest automaker, Maruti Suzuki India, said on Wednesday that its total production in August fell 8% per year to 1,13,937 units as the semiconductor shortage impacted its schedules Manufacturing.
The company produced a total of 1,23,769 units during the period last year, Maruti Suzuki India (MSI) said in a regulatory filing.
“The company’s production volume in August 2021 was affected due to a shortage of electronic components,” the automotive major noted.
Semiconductors are silicon chips that perform control and memory functions in products ranging from automobiles, computers and cell phones to a variety of other electronic items.
The use of semiconductors in the automotive industry has increased worldwide in recent times with new models featuring more and more electronic features such as Bluetooth connectivity and driver assistance systems, navigation and electric hybrids.
MSI said total passenger vehicle production stood at 1,11,368 units last month, up from 1,21,381 units in August 2020.
Mini-car production including the Alto and S-Presso models amounted to 20,332 units last month compared to 22,208 units a year ago.
Likewise, the manufacture of compact cars, including WagonR, Celerio, Ignis, Swift, Baleno and Dzire, fell to 47,640 units from 67,348 units previously, MSI said.
Production of utility vehicles – Gypsy, Ertiga, S-Cross, Vitara Brezza and XL6 -, however, rose to 29,965 units last month from 21,737 units in the corresponding month of 2020.
The company also reported an increase in production of its Eeco van to 10,430 units last month from 8,898 units in August 2020.
MSI said production of its Super Carry light utility vehicle stood at 2,569 units last month, up from 2,388 units last month.
MSI had reported a 58 percent increase in total production in July on an annual basis to 170,719 units.
On August 31, the auto major announced that it expects total vehicle production in September at its factories in Haryana and Gujarat to be only 40% of normal production due to the shortage of semiconductors.
The production capacity of the company at the Gurgaon and Manesar factories in Haryana is around 15 lakh units per year.
In addition, Suzuki Motor Gujarat (SMG), a 100% subsidiary of the Japanese Suzuki Motor Corporation, has an additional installed production capacity of 7.5 lakh units per year.
SMG, which supplies cars exclusively to MSI, said it would cut production activity in August at its manufacturing facility in Ahmedabad due to a semiconductor shortage.
The company had also decided to reduce production to a single shift on some of the factory’s production lines. All units produced in SMG are supplied to MSI.

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