NEW DELHI: Global semi-conductor shortage has hit production at India’s largest carmaker facility. Maruti Suzuki (MSIL) on Wednesday informed that owing to the chip shortage situation, the company has been told by its contract manufacturer Suzuki Motor Gujarat Private (SMG), that production will be partially impacted in August.
SMG will tentatively not carry out production on the three Saturdays (7th, 14th and 21st August). In addition, some of the production lines may see temporary reduction from two-shift to one-shift working. “As the situation is dynamic and uncertain, the company will monitor and take a day-to-day decision on models, lines or shifts to optimise resources for maximum efficiency,” said MSIL in a regulatory filing.
Semi-conductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers to cellphones. Following surge in demand for electronic items during the lockdown period, automakers are struggling to secure their quota for this miniscule but important component.
SMG has annual production capacity of 7.5 lakh units and the facility produces popular models such as Baleno, Dzire and Swift. A fall in production of these models will not only impact MSIL’s monthly wholesales but may also increase waiting period for buyers.Japan’s Suzuki had established SMG in March 2014. Together with MSIL’s capacity of 15 lakh units, Suzuki’s production ability in India is around 22.5 lakh units per annum.