Maruti production hit for 2nd month due to chip crisis

Maruti production hit for second month due to chip shortage

Maruti's Haryana plant and its contract manufacturing company, Suzuki Motor Gujarat Private, will see production curbs in October, the company said

Corporate office of Maruti Suzuki India Limited is pictured in New Delhi. Credit: Reuters Photo

India's top carmaker Maruti Suzuki said on Thursday it was expecting total vehicle production in October at two of its plants to be around 60 per cent of normal levels due to a global chip shortage.

Booming demand for consumer electronics and supply chain disruptions across the globe have led to an acute shortage of chips, forcing a number of car companies to drastically cut production as they try to secure limited semiconductor supplies.

Maruti and rival Mahindra and Mahindra had also warned of a hit to their production for September due to the shortage.

Maruti's Haryana plant and its contract manufacturing company, Suzuki Motor Gujarat Private, will see production curbs in October, the company said in a regulatory filing on Thursday.

In August, it had said total production volume across both locations could be around 40 per cent of normal output in September.

Due to the problems in the industry, automakers are focussing on making high margin models and have passed on some of the costs to customers. All top carmakers in India, including Maruti, Tata Motors and Mahindra, have increased prices multiple times in 2021.

Globally, Ford Motor Co, Honda Motor Co Ltd, General Motors Co and Volkswagen AG have been caught off guard by the chip shortage, forcing many to idle or curtail production.

Check out DH's latest videos: 

Get a round-up of the day's top stories in your inbox

Check out all newsletters

Get a round-up of the day's top stories in your inbox