Maruti Suzuki’s August production falls

Maruti Suzuki’s August production falls

Shares of Maruti Suzuki India was trading in the red, down half a percent in the morning session on September 8 after the company came out with its August production numbers.
Its August production was down 7.9% at 1.14 lakh units against 1.24 lakh units (YoY). Production volume of August was affected due to electronic components shortage.
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cell phones to various other electronic items.
The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

Maruti’s total passenger vehicle production stood at 1,11,368 units last month, as against 1,21,381 units in August 2020.
Production of mini cars comprising Alto and S-Presso models stood at 20,332 units last month as against 22,208 units a year ago.
Similarly, manufacturing of compact cars, comprising WagonR, Celerio, Ignis, Swift, Baleno and Dzire, declined to 47,640 units from 67,348 units earlier.

Production of utility vehicles — Gypsy, Ertiga, S-Cross, Vitara Brezza and XL6 — however increased to 29,965 units last month from 21,737 units in the corresponding month of 2020.
The company also reported an increase in the production of its Eeco van at 10,430 units last month as compared with 8,898 units in August 2020.

The production of light commercial vehicle Super Carry stood at 2,569 units last month, as against 2,388 units in the year-ago month.
MSI had reported a 58% increase in total production in July on a yearly basis to 1,70,719 units.
The company has decided to scale down production to single shift at some manufacturing lines in the plant.

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