Last Updated on Sep 1, 2021 by Aradhana Gotur
Maruti Suzuki (MSI), one of the largest automobile companies in the country, tumbled over 1% in the morning trade on 1 September, 2021. This was in response to MSI’s expectation of a production cut during the month owing to chip shortage.
In addition to the vehicle production in Haryana, Maruti Suzuki India also expects an adverse impact on their contract manufacturing company, Suzuki Motor Gujarat Pvt. Ltd. (SMG) in Gujarat. Currently, the total vehicle production volume across both locations is estimated to be around 40% of the normal level.
Not only this. Maruti Suzuki also announced a vehicle price hike across the board this month to make up for the inflated cost of raw material. As per Shashank Srivastava, Senior Executive Director of Maruti Suzuki India, the hike in prices would be substantial owing to the consistent uptrend in the commodity price.
The shortage in semiconductors has ravaged both the global and Indian auto industries. In July, Tata Motors had also cut the sales forecast of their luxury car brand Jaguar Land Rover.
According to Reuters, the CFO of Stellantis had revealed that the automotive industry would face the shortage until 2022. But several other reports forecast the issue to stay put until the end of 2023. For consumers, this would mean longer waiting periods.
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