Chip shortage: Maruti Suzuki reports 8% dip in production in August

The country's largest carmaker Maruti Suzuki India on Wednesday said its total production in August declined by 8 per cent on a yearly basis to 1,13,937 units as semiconductor shortage impacted its manufacturing schedules.

The company had produced a total of 1,23,769 units in the year-ago period, Maruti Suzuki India (MSI) said in a regulatory filing.

"Production volume of the company in August 2021, was affected due to electronic components shortage," the auto major noted.

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic items.

The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

MSI said total passenger vehicle production stood at 1,11,368 units last month, as against 1,21,381 units in August 2020.

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, manufacturing of compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno and Dzire, declined to 47,640 units from 67,348 units earlier, MSI said.

Production of utility vehicles -- Gypsy, Ertiga, S-Cross, Vitara Brezza and XL6 -- however increased to 29,965 units last month from 21,737 units in the corresponding month of 2020.

The company also reported an increase in the production of its Eeco van at 10,430 units last month as compared with 8,898 units in August 2020.

MSI said production of its light commercial vehicle Super Carry stood at 2,569 units last month, as against 2,388 units in the year-ago month.

MSI had reported a 58 per cent increase in total production in July on a yearly basis to 1,70,719 units.

On August 31, the auto major had announced that it expects total vehicle production in September across its plants in Haryana and Gujarat to be just 40 per cent of the normal output due to the semiconductor shortage.

The company's production capacity at Gurgaon and Manesar plants in Haryana is around 15 lakh units per annum.

Besides, Suzuki Motor Gujarat (SMG), a 100 per cent subsidiary of Japan's Suzuki Motor Corporation, has an additional installed production capacity of 7.5 lakh units per annum.

SMG, which supplies cars exclusively to MSI, had announced that it would scale down production activity in August at its Ahmedabad-based manufacturing plant due to semiconductor shortage.

The company had also decided to scale down production to single shift at some manufacturing lines in the plant. All units produced in SMG are supplied to MSI.