Chip shortage to see waiting list get longer for Maruti’s Dzire, Swift and Baleno – Times of India

NEW DELHI: Supplies of Maruti Suzuki’s popular models such as the Dzire mini sedan and hatchbacks Swift and Baleno will be impacted as the global semiconductor shortage will mean reduced production at Suzuki’s Gujarat plant which makes the cars.
Suzuki Motor Gujarat (SMG), a fully-owned subsidiary of Japan’s Suzuki Motor Corporation, will be scaling down production this month at its Ahmedabad-based manufacturing plant due to chip shortage issue that has also hit other companies in the auto industry, apart from makers of electronics such as mobile phones and laptops.
Apart from Maruti, other companies such as Tata Motors and Hyundai have also complained about semiconductor shortage and its impact on customer supplies. The issue has not only seen an increase in retail prices, but has also led to longer waiting periods for the consumers.
Suzuki’s Gujarat plant, which exclusively supplies cars to Maruti, will scale down production to a single shift at some manufacturing lines in the plant, Maruti said.
“Owing to the semiconductor shortage situation, the company has been informed by its contract manufacturing company, SMG, that production will be partially impacted in this month,” Maruti said, adding that SMG will tentatively not carry out production on the three Saturdays (August 7, 14 and 21) during August.
The company said that as the situation is dynamic and uncertain, it will monitor and take a day-to-day decision on models, lines or shifts to optimize resources for maximum efficiency.
Usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.
Industry experts feel that enhanced demand for automobiles and electronics over the past few months has put pressure on the global supply chains, leading to a shortage.
Suzuki’s Gujarat plant has an installed production capacity of 7.5 lakh units per annum. Together with Maruti’s own production ability of 15 lakh units, Suzuki group’s production ability for cars in India stands at around 22.5 lakh units.
Suzuki had established SMG in March 2014, aiming to secure production ability in preparation for the automobile market growth in India, as well as for expansion of exports from the country.
Maruti is now scouting for land in Haryana to open one of its biggest production facilities – estimated at 10 lakh units per annum – for which it plans to invest up to Rs 18,000 crore.