Shortage of electronic parts may affect production in FY24: Maruti Suzuki

Firm has already posted a 5.6 per cent dip in March even as it says it took all possible measures to minimise the impact

The country’s largest passenger car maker, Maruti Suzuki India (MSIL), has posted a 5.6 per cent dip in production in March on account of shortage of electronic components.

The company said in a notification to the stock exchanges that shortage of electronic components had had some impact on the production of vehicles in FY2022-23. It produced 154,148 vehicles in March compared to 163,392 in March 2022.

The company produced 108,448 passenger cars, down 4.5 per cent from last March’s 113,611 units.

MSIL said that the shortage of electronic components had some impact on the production of vehicles in FY23. “The Company took all possible measures to minimise the impact. As the supply situation of electronic components continues to be unpredictable, it might have some impact on the production volume in FY 2023-24 as well,” it said in a statement.

MSIL sold a total of 170,071 units in March 2023.

Total sales in the month include domestic sales of 136,787 units, sales to other OEMs of 3,165 units and its highest ever monthly exports of 30,119 units.

For the full financial year 2022-23, the company posted its highest ever total sales of 1,966,164 units. Total sales include domestic sales of 1,644,876 units with a growth of 20.5% over FY 2021-22, sales to other OEMs of 61,955 units and highest ever exports of 259,333 units.

However, as analysts pointed out, initial signs of demand moderation in PVs have set in.

Motilal Oswal Analysts said that there has been a drop in the level of enquiries and bookings during the month.