Maruti Suzuki India MSI stated on Tuesday that production at its Haryana and Gujarat plants will drop in December due to the shortage of electronic components due to the global semi-conductor shortage.
The firm believes that the total vehicle production volume could be around 80 per cent to 85 per cent of normal production in December 2021, and could be around 80 per cent to 85 per cent of normal production in both locations.
The automaker said in a statement that the Company is expecting an adverse impact on vehicle production in the month of December 21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Private Limited SMG in Gujarat due to a supply constraint of electronic components.
The semiconductor shortage has adversely impacted production at Maruti facilities for several months now. In October, the firm said that November production at both facilities in Haryana would be around 85 per cent of normal roll-out.
Semiconductors or chips are essential components of vehicles, which allow for a wide range of features such as navigation, infotainment and traction control. Premium cars with advanced safety and entertainment features need more chips compared to the base models.
The global shortage of semiconductors will moderate the growth in India's passenger vehicle PV sales to 11 -- 13 per cent in the current financial year, 400 -- 600 basis points lower than what it would have been without the scarcity, according to CRISIL Ratings.
Maruti Suzuki announced on November 30 that all non-cargo variants of EECO will be increased by Rs 8,000 due to the introduction of the passenger airbag.