Semiconductor shortage hits Maruti Suzuki, backorders for 3.60 lakh cars

The country’s largest car company, Maruti Suzuki, is facing difficulties due to a shortage in the supply of semiconductors. This has had a great impact on the production of the company. In the third quarter of the current fiscal year, the backorders with the company increased to around 3.63 lakh units.

The company said on an analyst call that a lack of clarity about electronic components is a challenge in production planning. This is affecting the production volume of the company. Maruti Suzuki’s supply chain, engineering, production and sales teams are working to extract the maximum production volumes of available semiconductors. Semiconductor supplies have improved in the third quarter compared to the second quarter. However, the company was unable to produce around 46,000 units in the December quarter due to semiconductor shortages.

Maruti Suzuki has a total production capacity of 1.5 million units at its Gurugram and Manesar plants. Apart from this, the company can produce around 7.5 lakh units at the Gujarat plant. The company says that demand is increasing and that it can achieve greater growth than the industry. Maruti production decreased 17.96 percent to 124,722 units in December. There were 1,52,029 units in the same month last year. The company has said that a shortage of electronic components has had some impact on vehicle production in the past month. The company has taken steps to reduce this impact.

Maruti’s production in the mini car and compact car segments fell 21 percent to 83,753 units. There were 1,06,090 units in the same month last year. This segment includes cars like the Alto, S-Presso, Baleno, Celerio, Dzire, Ignis, Swift, and WagonR. Production of the Super Carry light commercial vehicle stood at 587 units last month. This was higher than the 3,262 units in the same month last year. The company’s wholesale sales fell nearly 9 percent to 139,347 units in December. The company plans to keep inventory levels low starting this month. Maruti believes that the country’s high taxes on vehicles make them out of reach for most people.

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