Semiconductor Shortage Leads Maruti Suzuki To Reduce Production

Suzuki Motor Gujrat (SMG) which is a contract manufacturing company of Maruti Suzuki, will not carry out production for three consecutive Saturdays in August (7th, 14th and 21st August).

In addition, some of the production lines may see a temporary reduction from 2-shift to 1-shift working. 

“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.” The carmaker said in a statement filing at BSE

SMG, which is owned by Suzuki Motor Company, Japan, supplies fully built cars such as Swift and Baleno to Maruti Suzuki India (MSIL) for sale. This is for the first time that India’s largest carmaker has called out a production issue due to the non-availability of chips.

Located in Hansalpur, Ahmedabad, Gujarat, India, SMG is the first and the only Suzuki automobile manufacturing plant wholly owned directly by Suzuki as a foreign company, as the other plants are owned by Maruti Suzuki. The plant supplies vehicles like Baleno, Swift, DZire and also manufactures the K12 engines for Maruti Suzuki in the domestic market and to overseas markets. The plant and has a total annual capacity of 750,000 units.

“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.” The statement further added

Shortage of semiconductors has severely impacted a lot of carmakers globally and in India as well, Mahindra’s Thar lately has seen a waiting period of almost a year, due to chip shortage. 

“Some of the production lines may see a temporary reduction from 2-shift to 1-shift working (at SMG). 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,” MSIL added.