Semiconductor shortage still not over for Maruti Suzuki, reveals key official

  • Maruti Suzuki CEO Ajay Seth said the automaker is still facing production challenges owing to disruption in semiconductor supply chain.
Maruti Suzuki is one of the most impacted car brands due to the chip shortage.
Maruti Suzuki is one of the most impacted car brands due to the chip shortage.

Semiconductor supply chain disruption may have improved, but the worry is not over for Maruti Suzuki. The automaker's Chief Financial Officer (CFO), Ajay Seth, has said that the car manufacturer continues to witness an impact on its production as microchip supplies remain challenging and unpredictable. He also revealed that to deal with the situation, Maruti Suzuki is now working on maximising its production output from the available supply of electronic components, reports PTI.

The microchip supply situation improved in the third quarter of the current financial year, which ended in December 2022, as compared to the second quarter of this fiscal. However, due to the chip crisis, Maruti Suzuki's production output was around 46,000 units lower in the October-December quarter. "Limited visibility of electronic components is a challenge in planning our production. The electronic component shortage is still limiting our production volumes," Seth said in an analyst call.

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He also added that the electronic components supply situation remains unpredictable. "Our supply chain, engineering, production and sales teams are working towards maximising the production volume from available semiconductors," Seth noted.

Several automakers, including Maruti Suzuki, have witnessed massive disruption due to the semiconductor crisis over the past few months. The disruption in vehicle production has resulted in a long waiting period for consumers. Maruti Suzuki's pending customer orders have reportedly increased to about 3.63 lakh units at the end of the third quarter of the current fiscal.

Currently, India's largest car manufacturing companyhas a cumulative production capacity of 15 lakh units per annum at both the Manesar and Gurugram plants. It also has access to 7.5 lakh units from the parent Suzuki Motor's Gujarat facility. However, despite having such a large production capacity per annum, Maruti Suzuki is facing difficulties with manufacturing volume due to the chip shortage.

First Published Date: 29 Jan 2023, 16:29 PM IST
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