Customers waiting for cars but semiconductor shortage not in our control: Maruti1 min read . Updated: 27 Oct 2021, 03:44 PM IST
Maruti Suzuki says it is working overtime to ensure that customers get deliveries of vehicles booked but the company highlights navigating the issue of semiconductor shortage isn't easy.
Maruti Suzuki on Wednesday announced its financial results for Q2 of FY 2021-22 and while exports touched record levels, domestic production and delivery timelines remained a source of massive concern, primarily due to the global shortage in semiconductor. Maruti Suzuki India Limited Chairman RC Bhargava also pointed to the fluctuating cost of crucial components like steel and aluminium as having a bearing on the final price of each unit.
The global semiconductor shortage has massively affected almost every auto company across the world and those in India are no exception. Maruti has had to suspend production cycles from time to time due to the issue. The company has highlighted, as a result, that while it has received 200,000 customer orders by end of Q2 (end September), all efforts are being made to meet delivery timelines. “I understand that a lot of our customers our waiting for their cars. I thank them for their loyalty and apologize for the delays. But it is important to note that the semiconductor shortage is not in our control and that the future situation is hard to predict," said Bhargava.
Maruti registered net sales of ₹192,978 million in Q2 FY 2021-22, vis-a-vis ₹176,893 million in the same period of 2020-21. The company's net profit in Q2, however, came down from ₹4,753 million in the Q2 FY 2021-22 from ₹13,716 million in Q2 FY 2020-21 due to rising commodity prices.
And at a time when rivals have upped their game, Maruti is sure that that is not the factor for the current situation. “We have lost the most in India due to the component shortage. Some other companies have not. That is the situation," said Bhargava.