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Maruti Suzuki India warns of production hit for second month due to chip shortage



Maruti had warned of shortages affecting its production for September.

Bangalore: India’s top carmaker Maruti Suzuki on Thursday said it was expecting total vehicle production at its two plants to be around 60% of normal levels in October due to global chip shortages. Rising demand for consumer electronics around the world and supply chain disruptions have led to severe shortages of chips, forcing many car companies to drastically cut production as they try to secure limited semiconductor supplies.

Maruti and rival Mahindra & Mahindra had also warned of shortages affecting their production for September.

Maruti’s Haryana plant and its contract manufacturing company, Suzuki Motor Gujarat Pvt, will curtail production in October, the company said in a regulatory filing on Thursday.

In August, it had said that the total production volume at both the locations could be around 40% of the normal production in September. Due to problems in the industry, automakers are focusing on making high-margin models and pass some of the cost on to the customers.

All the top carmakers in India including Maruti, Tata Motors and Mahindra have increased the prices several times in 2021.

Globally, Ford Motor Co., Honda Motor Co., Ltd., General Motors Co. and Volkswagen AG have been spared chip shortages, forcing many to idle or reduce production.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)


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