Due to a chip shortage, Maruti Suzuki, the country’s largest automaker, faces a difficult challenge in keeping to its production targets. The scarcity is so severe that Suzuki Motor Gujarat, the company’s factory in the western state, is reducing output to one shift from two for its popular models — the Baleno, Swift, and Dzire — for a week till August 11th.
According to sources, this might result in a revenue loss of 11,000 to 12,000 units — worth 500-700 crore — through August. These are Maruti’s best-selling vehicles, but they also have the highest profit margins.
Production is likely to be reduced to one shift in the next week, until chip supply is restored on the 12th of this month.
