Semiconductor shortage temporary, may last till 2022: RC Bhargava

The current semiconductor shortage problem faced by the automobile industry is temporary and is expected to be over by 2022 and Maruti Suzuki India hasn't had a major impact due to it though its production has been hit partly, company Chairman RC Bhargava said on Tuesday.

Addressing shareholders at the company's annual general meeting held virtually, he also said the country's largest carmaker is looking at the electric vehicle (EV) space, but will enter it only when it makes it feasible for customers in terms of affordability and also for the company to operate without making a loss.

On the impact of the supply constraints of chips on production, he said, "Meanwhile, there has been a bit of a hit on production of vehicles and we have had to adjust but there is no major loss that we have to be concerned about." Bhargava also said Maruti Suzuki India has outlined a capex of Rs 4,500 crore in the ongoing fiscal for its various business purposes, but the actual expenditure will be known only at the end of the year.

Responding to a query on the company's plans for EVs, he said Maruti Suzuki is the leader in the conventional car industry and the company's intention is to achieve leadership position even in the EV sector in future.

"Maruti will be in the electric vehicle sector. We will introduce electric vehicles, but we will do that at an appropriate time when it will be feasible to sell these electric vehicles in reasonable numbers and when it will be feasible to sell them without making a loss on the whole operation," Bhargava asserted.