Carmakers to ramp up production by 18-20% as semiconductor shortage eases

If companies end up manufacturing vehicles according to plan, production is likely to exceed the pre-Covid volumes of Q4FY20

Passenger vehicle makers are looking to ramp up production by an average 18-20 per cent in the March quarter compared to the December quarter as the shortage of semiconductor eases. If the companies end up manufacturing vehicles according to plan, it’s likely to even exceed the pre-Covid volumes of Q4FY20, according to analyst and supplier estimates.

“They all are going full throttle. But production will still not be optimal and fall short by 10-15 per cent,” said a top official at a component manufacturer that counts all the key passenger vehicle makers as its customers.

Car market leader, Maruti Suzuki