Maruti: Chip shortage may lead to massive production cut

Maruti Suzuki was expected to lower production plans for 2021 by 5%.

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