[TusharK]

Yesterday we reported how Mahindra was facing serious issues due to the ongoing semiconductor shortage. Well, India's biggest carmaker, Maruti Suzuki, is not immune to it either.



According to a media report, Maruti Suzuki may have to cut production by 30-40% this month. That's a massive loss of 50,000-60,000 units or Rs. 2,500-3,000 crore in revenue. The carmaker is likely to produce around 1,10,000-1,20,000 units this month.

With the festive season just around the corner, a production cut at this time of the year would mean long waiting periods for popular models.

The carmaker has undertaken product rationalization at its Manesar and Gujarat plants. As a result of this, production at the Manesar plant is likely to drop to 45,000 units, while the Gujarat unit could see a production cut of 65-70%.

Earlier, Maruti Suzuki was expected to lower production plans for 2021 by 5%, which is about 70,000-80,000 units.

Source: ET Auto

Link to Team-BHP News

[PrideRed]

Quick question, Is semi conductor needed for Head Unit and ECU or are there multiple components dependent on this? May be manufacturers can give an option to sell car without Head Unit to customer and prioritize ECU.

[reignofchaos]

ECU and BCM are the main boards. Plus infotainment/driver information display has its own chips. In addition there are multiple micro controllers.

[saisree]

It's time India enters this Semiconductors and chip business. We are over dependent on imports. Govt should look at ECIL for a start.

[Goldenboy]

No wonder manufacturers have no incentive to reduce car prices! If waiting periods are high in spite of high prices, they would be leaving money on the table if they reduced prices.

In fact, I wouldn't be surprised if prices of cars increased a bit in the next 6 months as companies look to offset lower volumes with higher prices.

[JoshMachine]

Originally Posted by saisree

It's time India enters this Semiconductors and chip business. We are over dependent on imports. Govt should look at ECIL for a start.

Tata Group in the foray to manufacture semiconductors: source.

[Tucker48]

Yes there is chip shortage but that is not due to manufacturing capacity as the capacity still exceeds demand as stated by the Chairman of TSMC.
The issue is much more complicated which includes supply chain, geopolitics, hoarding and profiteering.

https://roboticsandautomationnews.co...hortage/43430/

[HP-BHP]

This is bad news overall for the auto industry as well as consumers / prospective car buyers.

Chip shortage is not going to end anytime soon. All the major semiconductor manufactures have their assembly line booked till Q1 2022 for the existing orders. Usually, the assembly lines are booked in advance for two years (one year at least) so it seems there would be no respite in the near future.

It's only very high-end semiconductor manufacturers (like TSMC, Samsung) who can make changes to their fabrication cycle quickly but I doubt any car manufacturer uses their chips in their vehicles.

While manufactures can still play with AVN units (by making them optional / keeping it only for the higher variants with lower volumes) but without ECU / BCM, the vehicle would practically be a pile of metal. Manufactures will have no other option but to increase the prices (as whenever they will talk to the semiconductor manufacture they will get the fresh quotation) as in the current volatile market, prices are on the higher side for the electronics.

[amvj]

My NEXA "RM" is keeping this in his whatsapp status.

[r-a-s]

Maruti Suzuki production estimated to be about 40% of Normal production in September 2021 due to supply constraint.

[volkman10]

Maruti to raise production in October, is making arrangements to secure supply of chipsets through multiple channels.

Maruti Suzuki has told its component suppliers to be ready for the production of 160,000-180,000 cars and SUVs in October

Link

[volkman10]

Maruti Suzuki's sales tumble in September amid shortage of semiconductors.

Maruti Suzuki reported total sales of 86,380 units last month of which 66,415 units were sold in the domestic market.

While the decline in figures does not come as a surprise because Maruti Suzuki had already announced production cuts owing to shortage of electronic components, the concern for the country's largest car maker is that even the road ahead remains fraught with similar challenges.

Link

[TusharK]

Maruti Suzuki's production to be at 60% in October 2021

Maruti Suzuki has announced that it expects vehicle production at two of its manufacturing units to be around 60% of normal levels in October 2021.



Production has been hit due to the global chip shortage. In September, Maruti Suzuki's total production across both factories was around 40% of normal. Similarly, in August this year, production at Maruti's facilities was down by 30-40%.

Last month, there were reports of Maruti increasing its output to around 1,60,000-1,80,000 units in October 2021 and had informed its component suppliers to plan their production accordingly. It was also said that Maruti Suzuki was making arrangements to secure the supply of chipsets through multiple channels.

Source: ET Auto

[saikarthik]

It's already evident from the September month sales that the companies that are better prepared to handle production losses are gaining market share for now.

Let it be due to the chip shortage or the Covid induced production cut, one thing is very clear. When the dust settles, there will be a clear change in the market share numbers. Tata seems to have made lot of this loss from other manufacturers.

Sale number credit: Rushlane

Originally Posted by 2000rpm

Just noticed Citreon! Dont know how they will survive with double digit monthly sales across India!.

Maybe they can sell their unused chips to others!

1. Citroen has a plan and these numbers are from the C5 Aircross which is a CKD assembly. It's purpose was to introduce the brand to prospective customers and make the brand familiarize to others as a somewhat premium OE. It's doing the job perfectly. The mass market car CC21 (2022 C3) is not yet out and that should be the volume puller as per their plan.

2. If I were a company, I won't share and let the competition cut production to gain my market share.

[2000rpm]

Originally Posted by saikarthik

Attachment 2214762

Just noticed Citreon! Dont know how they will survive with double digit monthly sales across India!.

Maybe they can sell their unused chips to others!