Maruti sales figures are going to fall – How?
The automobile industry is facing one of its worst crises globally. The COVID-19 pandemic and the chip shortage have together wreaked havoc. Maruti Suzuki, the biggest car manufacturer in India, is also reeling under these circumstances. Maruti Suzuki earlier was able to navigate the chip shortage, but with its continued effect, it is finding it hard right now. In today’s article, we will be looking at why Maruti sales figures are going to fall?
What is the issue and why Maruti sales are going to fall?
Maruti may resort to cutting down a lot of production capacity due to the chip shortage. Until recently, Maruti was expected to cut only 5% of its production plans for this year. That would have been around 70,000-80,000 vehicles. But now, they may resort to a deeper-than-expected 30-40% cut in August alone. This would mean a loss of 50,000-60,000 cars in production capacity in August. The company is expected to produce only 1,10,000-1,20,000 units in August. Maruti’s plants in Gujarat and Haryana are experiencing a shortage. The production losses in the July-September quarter may now be as high as 1,50,000 units.
How will Maruti sales affect us?
The big reductions in production capacity will affect the availability of popular models in the upcoming festive season. Already a lot of cars are on big waiting lists and this is expected to worsen. The production of entry-level cars has not been hampered much.
When will this issue resolve?
The situation is expected to remain uncertain for the upcoming months. Covid cases in Malaysia and droughts in Taiwan have worsened this situation. These two countries are among the major suppliers of semiconductors to the world.
Other affected manufactures
Mahindra & Mahindra, MG Motors and Ford India have all undertaken production cuts due to the shortage. Mahindra is the worst affected as it is not able to produce the newly launched XUV700 and the Thar, which has a waiting list of a year. Other brands like the Hyundai group and Tata have also been affected but to a somewhat limited extent.
This was our information regarding why Maruti sales figures are going to fall. If you have car buying doubts click here to ask! Get the lowest price for car insurance here. For more such content stay subscribed to MotorOctane Youtube, Google News Facebook and Twitter. Also, follow us on Flipboard and Reddit where we have a discussion community.
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