India’s largest passenger vehicle manufacturer, Maruti Suzuki is set to produce 160,000 – 180,000 cars and SUVs in the month of October, and as such as told its component suppliers to be ready. Sources say the carmaker is working round the clock to secure supply of chipsets through multiple channels.
However, industry insiders say there was no guarantee for the maker of Swift and Vitara Brezza to meet the target. They said the guidance was probably meant to keep the vendor network ready in case the chipset availability improved.
This month, Maruti Suzuki like other carmakers has been forced to limit production to about 100,000 units due to the global shortage of semiconductors. According to a ET report, Maruti’s ability to source chips may have improved with an easing COVID-19 situation in Malaysia. Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic devices.
Maruti Suzuki had highlighted that production volume of the company in August 2021 was affected due to electronic components shortage. Production of mini cars, comprising Alto and S-Presso models stood at 20,332 units last month as against 22,208 units a year ago. Similarly, the carmaker said manufacturing of compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno and Dzire declined to 47,640 units from 67,348 units earlier. Production of utility vehicles such as Gypsy, Eritga, S-Cross, Vitara Brezza and XL6, however, increased to 26,965 units last month from 21,737 units in the corresponding month of 2020.
The carmaker, on August 31, had announced that it expects total vehicle production in September across its plants in Haryana and Gujarat to be just 40% of the normal output due to the semiconductor shortage.