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Suzuki Motor Gujarat To Scale Down Production in August Due to Chip Shortage

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  • SMG, which supplies cars exclusively to MSI, has also decided to scale down production to single shift at some manufacturing lines in the plant
  • It added that as the situation is dynamic and uncertain, the company will monitor and take a day-to-day decision on models, lines or shifts to optimise resources for maximum efficiency

Suzuki Motor Gujarat (SMG), a 100 per cent subsidiary of Japan’s Suzuki Motor Corporation, will scale down production activity this month at its Ahmedabad-based manufacturing plant due to semiconductor shortage, Maruti Suzuki India (MSI) said. SMG, which supplies cars exclusively to MSI, has also decided to scale down production to single shift at some manufacturing lines in the plant.

MSI said in a regulatory filing. that 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. SMG will tentatively not carry out production on the three Saturdays (August 7, 14 and 21). In addition, some of the production lines at SMG plant may see temporary reduction from two-shift to one-shift working, MSI noted.

It added that as the situation is dynamic and uncertain, the company will monitor and take a day-to-day decision on models, lines or shifts to optimise resources for maximum efficiency. SMG has an installed production capacity of 7.5 lakh units per annum. Together with MSI’s production ability of 15 lakh units, Suzuki’s production ability of automobiles in India is around 22.5 lakh units. All units produced in SMG are supplied to MSI.

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