Maruti Suzuki vehicle production dips 8% in August due to electronic components shortage

Biznextindia : Maruti Suzuki India Limited (MSIL), India’s largest car seller, has been hit hard by semiconductor shortage.

The company has reported 8 percent drop in its vehicle production at 113939 units. While, the company’s passenger vehicle production has dipped by 8 percent to 11,368 units, Light-Commercial vehicle production increased by 7.5 percent to 2569 units.

Due to semiconductor shortage, MSIL had halted production on three Saturday’s of August i.e. 7th, 14th and 21st August. In addition, the company had also reduced working in some of the production lines to single shift from double shift.

Semiconductor chips are central to the functioning of almost all modern-day vehicles. However, the COVID-19 pandemic has caused a huge surge in the purchase of electronic devices like PCs and tablets, and silicon manufacturers have been unable to keep up with ever-expanding demand, resulting supply shortage.

MSIL had reported 4.8 percent rise in sales at 130,699 units in August 2021. However, total domestic passenger car sales of the company had dipped by 8.7 percent to 103187 units.