Maruti Suzuki’s main supplier cut production in August

New Delhi: Suzuki Motor Gujarat (SMG), a 100 percent subsidiary of Suzuki Motor Corporation, will increase production activities this month at Ahmedabad-based manufacturing plants due to semiconductor shortages, said Maruti Suzuki India (MSI) on Wednesday.
SMG, which supplies a car exclusively for MSI, has also decided to reduce production to a single shift on several manufacturing lines at the factory.
“Because of the situation of semiconductor deficiency, the company has been informed by a contract manufacturing company, SMG, that production will be exposed to partial this month,” MSI said in the submission of regulations.
SMG will tentatively not producing on Saturday (August 7, August 14 and 21) this month, he added.
In addition, some production lines at the SMG factory can see a temporary reduction from two-shift to one-shift work, MSI records.
Because the situation is dynamic and uncertain, the company will monitor and make everyday decisions about models, lines, or shifts to optimize resources for maximum efficiency, he added.
Semiconductors are silicon chips that serve control and memory functions in products ranging from cars, computers and cellphones to various other electronic items.
The use of semiconductors in the automotive industry has risen globally in several times with new models that come with more electronic features such as Bluetooth connectivity and drivers, navigation, and hybrid-electric systems.
Industry experts feel that the increase in demand for cars in recent months has put pressure on the global supply chain that leads to deficiencies.
SMG has a production capacity installed by 7.5 lakh units per year.
Together with the production capability of MSI 15 lakh units, Suzuki car production capabilities in India are around 22.5 lakh units.
All units produced at SMG are supplied to MSI.
Suzuki has established SMG in March 2014, aims to secure production capabilities in preparation for the growth of the car market in India, as well as for expansion of exports from the country.
In October 2020, SMG became the fastest production site from Suzuki to achieve the production accumulation of 10 lakh cars.