Maruti Suzuki will reduce its production for September due to lockdowns in Malaysia. It will further increase prices of all its models due to high input costs.
With lockdowns in Malaysia, there has been a global shortage of semiconductors. This may lead to a production cut that will affect supply of cars to dealerships ahead of the festive season. In addition, customers may have to wait longer for the delivery of Vitara Brezza, Swift, and other models. The chip shortage is hurting automakers not only in India, but also the rest of the world.
Maruti Suzuki is likely to produce between 60,000 and 90,000 vehicles in September. This is almost 40-60% lower than its peak monthly output. Moreover, it also stands at almost half of the tentative plan at the beginning of August for September production.
This output now will be the lowest by the company since 2014, excluding the numbers for the lockdown-affected months.
In another event, the company recently announced that it will increase vehicle prices from September due to increasing input costs. It made the announcement in a regulatory filing on August 30th.
The automotive manufacturer said the following. “We wish to inform you that over the past year the cost of Company’s vehicles continue to be adversely impacted due to increase in input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise.”
However, it did not specify the rate of these hikes. They are likely to be implemented next month.