maruti suzuki: Chip shortage continues to haunt Maruti Suzuki

was unable to produce 51,000 units in the April-June quarter, according to a senior company official, due to the ongoing shortage of chips. The country’s largest automaker, which sold a total of 4,67,931 vehicles in June, noted that the semiconductor shortage is challenging in planning its manufacturing operations.

“Electronic component shortages are still limiting our production volumes. In this quarter (Q1), the company was unable to produce 51,000 vehicles,”

(MSI) CFO Ajay Seth said in an analyst call.

Limited visibility into the availability of electronic components is a challenge when planning our production, he said.

Seth noted that the company’s supply chain, engineering, manufacturing and sales teams were working to maximize the production volume of available semiconductors.

“The supply situation for electronic components remains unpredictable,” he lamented.

With demand remaining robust, the company’s current order book has reached 3.5 lakh unit.

Seth further stated that input cost pressures, led by the rise in commodity prices, were another challenge the company faced in the June quarter.

“The company has always strived to provide mobility to the masses and continued to work on targeted efforts to reduce costs to mitigate the impact of commodity inflation on selling prices,” he said.

MSI Executive Director (Corporate Planning and Government Affairs) Rahul Bharti said orders for new Brezza and Grand

approached the units of one lakh.

“Going forward, the company will strive to further strengthen its SUV portfolio to dominate the SUV segment like all other segments,” he said.

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