Maruti Suzuki expects adverse impact on production next month
NEW DELHI: Maruti Suzuki India (MSI) on Saturday said it expects an adverse impact on production at its two plants in Haryana and parent Suzuki’s Gujarat plant in November on account of supply constraint of electronic components due to semiconductor shortage.
Terming the situation as quite dynamic, the country’s largest carmaker noted in a regulatory filing that as per current estimates the total vehicle production volume across both locations in Haryana next month could be around 85 per cent of normal roll-out.
“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 November’21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Pvt Ltd (SMG),” MSI said in a regulatory filing.
The company’s production capacity at Gurgaon and Manesar plants in Haryana is around 15 lakh units per annum.
SMG Gujarat, which supplies vehicles exclusively to MSI, has an additional installed production capacity of 7.5 lakh units per annum.
The company had earlier stated that the total vehicle production volume across both locations in October could be around 60 per cent of normal production.
It had noted that the vehicle production in September would be just 40 per cent of its normal output due to the shortage of semiconductor chips.
Earlier this week, MSI reported a 66 per cent year on year decline in consolidated net profit at Rs 487 crore in the second quarter ended September 30, 2021, impacted by the ongoing semiconductor shortage and increase in commodity prices.