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Semiconductor chips have become an essential part of automobile industry. (Image used for representational purpose only)
Semiconductor chips have become an essential part of automobile industry. (Image used for representational purpose only)

Maruti Suzuki's Gujarat plant to scale down production due to chip crisis

  • Maruti Suzuki has informed that it will monitor the situation on a regular basis and take a day-to-day decision on models, production lines or shifts.

  • Various car makers including Maruti, MG Motor, Nissan, Tata Motors, among others have warned about chip crisis affecting production.

Maruti Suzuki's Gujarat plant will scale down its production activity this month due to a shortage of semiconductors. At some of its manufacturing lines, the facility will scale down production to single shift. Maruti further informed that its Ahmedabad-based plant will tentatively not carry out production on three Saturdays of the month - August 7, 14 and 21.

Maruti Suzuki informed that it will monitor the situation on a regular basis and take a day-to-day decision on models, production lines or shifts in order to optimise its resources for maximum efficiency. "Owing to the semiconductor shortage situation... production will be partially impacted this month," the company said in a regulatory filing.

The facility that was established in March 2014, has an installed production capacity of 7.5 lakh units per annum. In October 2020, the facility became Suzuki Motor's fastest production site to achieve accumulated automobile production of 10 lakh units.

(Also read | When the chips are down: Global shortage to keep crimping carmakers)

Semiconductor chips have become an essential part of automobile industry and its usage in vehicles has grown globally in recent times. New vehicles are increasingly becoming equipped with more and more electronic features such as Bluetooth connectivity, driver-assist features, navigation tools and hybrid-electric systems, all of which require these chips.

Apart from Maruti Suzuki, various other car makers including MG Motor, Nissan, Tata Motors and Mahindra, among others, have warned about chip crisis affecting production.

Tata Motors recently informed that it has planned various measures to deal with the global semiconductor shortage that has affected its production. The measures include making changes in its product configurations and buying chips directly from stockists. The carmaker is also looking to use different kinds of chips in components where the supply is most affected. The company expects the supply situation to remain challenging in the ongoing quarter.

(With inputs from PTI)

  • First Published Date : 04 Aug 2021, 05:34 PM IST