In a filing to the bourses the company said owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of September in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Pvt. Ltd. (SMG) in Gujarat.
“Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 40% of normal production”, the statement held.
The production plan for September is expected to be the lowest witnessed by the company since 2014 if one excludes the lockdowns of May and June of 2021. This is the third month in a row that Maruti’s production plan is being revised significantly down.
On a quarterly basis this will be the lowest output by the company in 21 quarters.
For a production shortfall of every 10,000 units, the company loses revenues of about Rs 500 crore. The lower production in September may hurt the company’s ability to fill channel inventory ahead of the festive season.
