Maruti Suzuki anticipates production loss in Q1

29 May 2023 , 10:52 AM

According to news reports, Maruti Suzuki India anticipates the production loss to continue in the first quarter with some relief anticipated in the months of July to September as it continues to struggle with the supply of electronic components. 

The biggest automaker in the nation has been struggling with chip scarcity for some time, which has affected its ability to supply the market.

‘Last fiscal year, we lost 1.7 lakh units. About 45,000 units were lost during the third quarter of the previous fiscal year. In a similar vein, we lost almost 38,000 units in the fourth quarter, according to Shashank Srivastava, Senior Executive Officer (Sales and Marketing) at Maruti Suzuki India, who talked to ET.

With demand outstripping supply, the automaker’s backlog of orders has grown to almost 4 lakh units, with Ertiga taking the lead with about 1 lakh reservations.

According to Srivastava, due to the present supply scenario, the company lost production in April and expects a recurrence of the problem in May and June as well.

In addition to the Ertiga, the 60,000-unit order backlog for the small SUV Brezza. Similarly, orders for Jimny and Fronx, two other brands, total more than 30,000 units each.

Srivastava expressed optimism that the chip supply problem may improve in the upcoming months.

As a result, he predicted that starting in July, things will probably start to improve.

Srivastava pointed out that the corporation must continually adjust its predictions because to the limited visibility on chip supplies.

But he added that there will be some improvement in the situation in the second quarter.

The company manufactured 1,44,097 passenger vehicles in April, a 6% decrease from 1,52,954 in the previous month. According to Maruti Suzuki India, the lack of electronic parts had some effect on how cars were made.

In 2022–2023, the automaker produced a record 19.22 lakh vehicles. However, it was unable to reach its goal of bringing the total production in the previous fiscal year to 20 lakh units.

With new models introducing increasing technological technologies like Bluetooth connectivity, driver assistance, navigation, and hybrid electric systems, the use of semiconductors in the automotive industry has increased internationally in recent years.

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