- Shortage of semiconductors affects production

- To stop operations on three days in August 2021

Maruti Suzuki India Limited has announced that it will cut down production at its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG) in August 2021. The company attributes this decision to the semiconductor shortage situation. SMG will halt its production activities on 7, 14, and 21 August and will also reduce the working hours from two shifts to one shift for select production lines.

The global shortage of semiconductors has affected car manufacturers around the globe with many scaling down their production. Maruti Suzuki had set up the SMG plant in February 2017 beginning with the production of the Maruti Suzuki Baleno. Since then, it has expanded its capacity and now produces the Swift hatchback and models for global exports.

SMG facility is divided into three plants – A, B, and C. Plant A currently manufactures the Baleno while Plant B makes the Swift hatchback. The compact sedan Dzire is produced at the newly built Plant C. A separate Powertrain Plant makes the 1.2-litre petrol engine along with five-speed manual and AMT gearboxes. Collectively, the facility has an annual production capacity of 7,50,000 units.

The regulatory filing by Maruti Suzuki read, “SMG will tentatively not carry out production on the three Saturdays (7th, 14th and 21st August). In addition, some of the production lines may see temporary reduction from two-shift to one-shift working. 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.”