Semiconductor shortage: Maruti Suzuki to minimize vehicle production in August
New Delhi : Maruti Suzuki India, India’s largest seller of passenger vehicles on Wednesday said that its production will be partially impacted in the current month owing to semiconductor shortage. The company has decided to halt production on three Saturday’s of August i.e. 7th, 14th and 21st August. In addition, some of the production lines may see temporary reduction from 2-shift to 1-shift working.
“This is to inform you that owing to the semiconductor shortage situation, the Company has been informed by its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG), that production will be partially impacted in this month. SMG will tentatively not carry out production on the three Saturdays (7th, 14th and 21st August). In addition, some of the production lines may see temporary reduction from 2-shift to 1-shift working. As the situation is dynamic and uncertain, the company will monitor and take a day-to-day decision on models, lines or shifts to optimize resources for maximum efficiency” said the company.
Chips are central to the functioning of modern-day vehicles, and without access to the components, many automotive firms have been forced to slow down production. 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.