The company said in an analyst call that the lack of clarity on electronic components is a challenge in planning production. This is affecting the production volume of the company. Maruti Suzuki’s supply chain, engineering, production and sales teams are working to extract maximum production volumes from the available semiconductors. Semiconductor supplies improved in Q3 as compared to Q2. However, the company could not produce around 46,000 units in the December quarter due to semiconductor shortage.
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 about 7.5 lakh units at the Gujarat plant. company says demand is picking up and it can achieve higher growth than the industry. Maruti’s production declined by 17.96 percent to 1,24,722 units in December. It was 1,52,029 units in the same month last year. The company has said that the shortage of electronic components has had some impact on the production of vehicles in the last month. The company has taken measures to reduce this impact.
Maruti’s production in the mini car and compact car segments fell by 21 percent to 83,753 units. It was 1,06,090 units in the same month last year. This segment includes cars like Alto, S-Presso, Baleno, Celerio, Dzire, Ignis, Swift and WagonR. Production of the light commercial vehicle Super Carry stood at 587 units last month. This was up from 3,262 units in the same month last year. Company’s wholesale in December sales decreased by almost nine percent to 1,39,347 units. The company plans to keep inventory levels low from this month. Maruti believes that the high taxes levied on vehicles in the country make them out of reach for most people.