Maruti Suzuki will reportedly produce 60% fewer cars in September 2021. The Indo-Japanese brand has three production plants in the Indian market. Even though the festive season has already begun in the Indian market and the demand for Maruti Suzuki vehicles has also revived. Reports suggest that Maruti Suzuki in a regulatory filing announced that despite the revival in demand, the shortage of semiconductor chips is hampering the production of motor vehicles.
Maruti Suzuki Manufacturing Capacity in India
Maruti Suzuki has two production plants, one in Gurugram and another in Manesar. The brand also has a contract manufacturing facility, Suzuki Motor Gujarat Pvt LTD (SMG) in Gujarat. SMG also cater to Suzuki’s export market. The Gurugram and Manesar manufacturing facility have a combined installed capacity of 15,80,000 units per annum. The Suzuki Motor Gujarat production plant has an installed annual capacity of 500,000 units.
Reduced Manufacturing Capacity
All three plants are capable of making more than 2 million vehicles in a year. Maruti Suzuki is capable of producing more than 173,300 per month. But for the month of September 2021, the company will produce around 103,800 units. The capacity will be reduced due to the shortage of semiconductors and other electrical components.
Global Shortage of Semiconductor Chips
Since the onset of the COVID-19 pandemic, car manufacturers are observing a disruption in the supply chain of electric components. The supply of semiconductor chips has hampered vehicle manufacturers around the world. Reports in the past have suggested that the demand for consumer electronics has also risen sharply during the pandemic.
The demand for products like laptops, tablet computers, televisions and other home appliances has increased. All of these require semiconductor chips. The car industry is also observing a rise in demand for cars with advanced telematics, and high-end infotainment systems which require semiconductor chips. The electrical components are also part of the body control module and electronic control unit. The booming electric vehicle segment has also created a mismatch in the supply and demand of electrical components.