New Delhi: Popular Maruti Suzuki model inventory such as Dzire Mini Sedan and Hatchbacks Swift and Baleno will be influenced because global semiconductor shortages will mean production reduction at the Suzuki Gujarat factory that makes cars.
Suzuki Motor Gujarat (SMG), a subsidiary whom owned fully from Suzuki Motor Corporation, will reduce production this month at Ahmedabad-based manufacturing plants because of the problem of lack of chip which is also about other companies in the car industry, apart from electronic makers such as cellphones and laptops.
Apart from Maruti, other companies such as Tata Motors and Hyundai also complained about the lack of semiconductors and their impact on customer supply.
This problem not only sees an increase in retail prices, but has also caused a longer waiting period for consumers.
The Gujarat Suzuki factory, which exclusively supplying a car to Maruti, will reduce production to one shift in several manufacturing lines at the factory, said Maruti.
“Because of the situation of semiconductor deficiency, the company has been informed by his contract manufacturing company, SMG, that production will be exposed to partial this month,” said Maruti, added that SMG would tentatively not producing three days Saturday (August) 7, 14 and 21 ) During August.
The company said that because the situation was dynamic and uncertain, it would monitor and make everyday decisions about the model, line or shift to optimize resources for maximum efficiency.
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 electrical systems.
Industry experts felt that the increase in demand for cars and electronics over the past few months has suppressed the global supply chain, which leads to deficiencies.
The Suzuki Gujarat factory has a production capacity installed by 7.5 lakh units per year.
Together with Maruti’s own production capabilities of 15 lakh units, the production capacity of Suzuki Group for cars in India stands around 22.5 lakh units.
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.
Maruti is now looking for land in Haryana to open one of its biggest production facilities – an estimated 10 lakh units per year – who plan to invest up to RS 18,000 Crore.