Maruti Suzuki says supply side bottlenecks still an issue for this fiscal

Maruti Suzuki India has said that it remains "vulnerable to supply side bottlenecks" this fiscal but it is trying to navigate the issue by sourcing electronic components through multiple sources. The country's largest carmaker could not produce around 1.7 lakh units last fiscal due to semiconductor shortage. However, it is now also coming up with measures to reduce the usage of certain kinds of chips in its cars.

Maruti Suzuki Fronx (HT Auto/Sabyasachi Dasgupta)
Maruti Suzuki Fronx

The company's Executive Officer - Corporate Affairs - Rahul Bharti told PTI that the problem of chip shortage is a global one and could affect different models, different companies, different modules differently. "All our efforts are to organise supplies through multiple sources," he added.

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The company is also working to do away with certain chips in some models/trims where it is not required. "If there is a particular semiconductor in a particular variant of a model which is superfluous and not required.. so we are removing all such needs so that our consumption is minimum. All such efforts are going on including negotiations at global scale. Having said that we are still vulnerable to supply side bottlenecks," Bharti noted.

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Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items. Usage of semiconductors has gone up in the auto industry in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

On sales growth outlook for this fiscal, Bharti said that industry body SIAM estimates the passenger vehicle industry to grow between 5-7 per cent. "Maruti Suzuki should grow well beyond this. So we would be better than the industry," he noted.

First Published Date: 30 Apr 2023, 13:34 PM IST
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