Maruti Suzuki production in December may remain under stress. Here's why
The global shortage in semiconductor chip and in several other crucial components has adversely, and therefore severely, impacted almost every major auto maker across the world. OEMs in India too have been feeling the heat with Maruti Suzuki, the country's largest car maker, possibly bearing the biggest brunt. While the company confirmed production cycles were hit in the past, the woes are likely to persist in December as well.
As per a Reuters report, Maruti Suzuki expects production at its two facilities - in Haryana and in Gujarat - to remain affected in the last month of what has been a challenging calendar year. It is reported that the company expects anywhere between 80% to 85% of normal production in the next month.
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While demand for passenger vehicles in the country has bounced back post the second Covid-19 wave, production and supply has been a big concern for automakers. The shortage in semiconductor chip has come as an unprecedented problem with no solution or respite in sight.
Maruti Suzuki previously admitted that delivery timelines had to be pushed back while stressing that it is taking every possible step to ensure customers' wait isn't prolonged. “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," RC Bhargava, MSIL Chairman, had told reporters during the company's Q2 financial result's announcement. (Full report here)
While December is more than likely to be yet another challenging month for auto makers at large, the dawn of the new year may not be very happy either. The chip shortage is predicted to last through the entire duration of 2022. And market watchers also predict that if the new variant of Covid-19 virus makes its deadly presence felt in India, it could be yet another stumbling block for the automotive sector here.