Maruti SuzukiDue to the global shortage of semiconductor chips, the company’s production in August 2021 will be partially affected by its contract manufacturing plant in Gujarat. Production will be suspended on August 7, 14, and 21, and some production lines may be temporarily reduced to one shift instead of two.
- Semiconductor shortage still affects the automotive industry
- Approximately 1,000 semiconductors used in passenger cars
- The automotive industry is not the largest market for semiconductors
Global semiconductor shortage
According to the exchange’s regulatory documents, “Because the situation is dynamic and uncertain, the company will monitor and make daily decisions on models, production lines or shifts to optimize resources to achieve maximum efficiency.”
Globally, semiconductor shortages are causing headwinds for the entire automotive industry until the second half of 2021. This problem stems from the increased demand for personal computers, tablets and smartphones during the peak of the COVID-19 pandemic, which has largely shifted supply from the automotive industry.
A passenger car usually uses about 1,000 semiconductors, and any slowdown in the supply chain will cause manufacturing to stall.
Suzuki Motor Gujarat (SMG), a subsidiary of Suzuki Motor Corporation, supplies Maruti Suzuki with complete vehicles to meet the needs of its domestic and export markets. In October 2020, SMG became the production base for passenger car industry to reach the fastest production capacity of 1 million vehicles. The total production capacity of SMG’s A, B, and C plants exceeds 750,000 units.
Maruti Suzuki’s sales in India
In terms of sales volume, Maruti Suzuki sold 1,33,732 units on July 21, close to its July 2018 sales level of 1,52,427 units. Compared with the previous month, MSIL sales also increased by 7.60% from 1,24,280 units in June 2021.
At the same time, talking about upcoming products, in addition to The new CelerioThe market launch is planned for the next few months.
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