New Delhi: India’s biggest car maker Maruti Suzuki warned on Tuesday, the production of vehicles in September will fall 60% due to lack of chips, join many global car makers who face the lack of critical components of pandemics.
Maruti has marked the impact of partial production in August, but its output results in its factory in Haryana and Gujarat countries for September showed the problem was to intensify the superior arms of Suzuki LTD car manufacture.
Japan.
The total production volume in September in both plants can be around 40% of normal output, Maruti said in the submission of regulations.
The company produced 170,719 cars in July and 165,576 in June.
Automakers become increasingly dependent on chips – for engine computer management, for better fuel features and driver help features such as emergency braking.
But the supply chain disorder during a pandemic has soared the demand for the chip used in electronics like a computer because people work from home and reach output on the car maker.
Facing the shortcomings, many car makers focus on making high margin models and also raising prices.
Maruti earlier this week announced a price increase in various models and vehicle costs for the past year continued to be hit by an increase in input fees.
Car makers, who have a greater market value of the parent Suzuki Motor Corp.
makes budget cars such as Alto and Popular Maruti Swift not say in a statement if production will be affected outside September.
Kally, RC Bhargava, earlier this year said that the semiconductor crisis did not end and it was difficult to predict what happened next.
However, analysts said Maruti was better positioned than its competitors for the ups and downs of the crisis.
“The models tend to have fewer features that require less semiconductors,” Aditya Jhawar said, an analyst at Investec Capital, added that Maruti used simpler semiconductors, while supply was more comply for more complex.
“We have to see Maruti’s production back to near the normal level around October and November,” he said.
Rivals Tata Motors and Mahindra and Mahindra Ltd have warned the impact of the increase in commodity prices and deficiency of global chips, combined with pandemic uncertainty.