Semiconductor shortage to dent Maruti Suzuki's production in August

Automobile major Maruti Suzuki's production will be partially impacted in August due to semiconductor shortages. On Wednesday, the auto major, in a regulatory filing to the BSE, said that the company has been informed by its contract manufacturer -- Suzuki Motor Gujarat -- that production will be partially impacted in this month.

"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," the filing said.

"SMG will tentatively not carry out production on the three Saturdays (7th, 14th and 21st August)."

Besides, the company said some of the production lines may see temporary reduction from two-shift to one-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 optimise resources for maximum efficiency."

Globally, various industries including consumer durables as well as automobiles and other sub-segments are facing semiconductor or electronic chip shortages due to high demand.

Earlier, the International Data Corporation (IDC) said: "Supply constraints will continue through 2021. While shortages initially occurred in automotive semiconductors, the impact is being felt across the board in semiconductors manufactured at older technology nodes."

The industry will continue to struggle to rebalance across different industry segments, it said while investment in capacity now will improve the industry's resiliency in a few years.

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