Maruti Suzuki slashes down on vehicle production: Semiconductor shortage

The ongoing semiconductor shortage may reportedly force Maruti Suzuki to cut vehicle production in August by 30-40 percent, or nearly three-fourths of the 5 percent annual production cut forecast earlier. The company is now expected to produce 110,000-120,000 units this month.

For Maruti Suzuki, this would cause a loss of 50,000-60,000 units in production and Rs 2,500-3,000 crore in revenue in August, as per reports.

"Maruti Suzuki was expected to lower its production plans for this year by 5 percent or 70,000-80,000 vehicles. The output cut in August alone would be about three-fourths of that," people in the know told the publication.

The semiconductor shortage had already hit Maruti Suzuki's contract manufacturing company Suzuki Motor Gujarat (SMG), which will shut production for three consecutive Saturdays in August.