Maruti Suzuki warns of semiconductor shortage in October; shares drop 3%
Maruti Suzuki estimated that the total vehicle production volume across both locations could be around 60% of normal production.
Shares of Maruti Suzuki India fell 3.16% to Rs 7103 after the car major said that vehicle production in Haryana and Gujarat plants will be impacted in October 2021 due to a shortage of electronic components. The company on Thursday announced that it is facing a supply constraint of electronic components due to the semiconductor shortage. Due to this, the firm is expecting an adverse impact on vehicle production in October 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG), in Gujarat.
Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 60% of normal production.
Maruti’s total passenger vehicle production declined 8.25% to 111,368 units in August 2021 compared with 121,381 units in August 2020, due to electronic components shortage.
On a consolidated basis, the auto major’s net profit stood at Rs 475 crore in Q1 FY22, compared with net loss of Rs 268.30 crore posted in Q1 FY21. Net sales surged 356.6% to Rs 16,799.90 crore in Q1 FY22 over Rs 3,679 crore in Q1 FY21.
Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).
Download Money9 App for the latest updates on Personal Finance.
