Maruti Suzuki expects December production to be affected due to chip crisis

The total vehicle production at both plants in Gujarat and Haryana could be 80-85 per cent of normal

Car market lader, Maruti Suzuki India expects December production at its Gujarat and Haryana plant to be impacted by the ongoing semiconductor shortage, it said in a notification to the stock exchanges on Tuesday.

The total vehicle production at both the plants could be 80-85 per cent of the normal production, it said.

"Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of December’21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG) in Gujarat," it said in the notification.

In a note released on 16 November, JP Morgan said it seems like the worst of the semiconductor shortage issue is behind auto companies globally. It stated that the auto chip shortage issue is now in the "rearview mirror."

It attributed the changing scenario to the Malaysian fabrication plants coming back to 100 percent.  Passenger vehicle sales in India declined 27 per cent year-on-year in October, as semiconductor shortage crippled production at auto makers, auto industry body, Society of Indian Automobile Manufacturers, said earlier this month.