Suzuki Motor Gujarat (SMG), a 100 per cent subsidiary of Japan’s Suzuki Motor Corporation, will scale down manufacturing exercise this month at its Ahmedabad-based manufacturing plant resulting from semiconductor scarcity, Maruti Suzuki India (MSI) stated on Wednesday.
SMG, which provides vehicles solely to MSI, has additionally determined to scale down manufacturing to single shift at some manufacturing strains within the plant.
“Owing to the semiconductor shortage situation, the company has been informed by its contract manufacturing company, SMG, that production will be partially impacted in this month,” MSI stated in a regulatory submitting.
SMG will tentatively not perform manufacturing on the three Saturdays (August 7, 14 and 21) this month, it added.
In addition, a few of the manufacturing strains at SMG plant may even see short-term discount from two-shift to one-shift working, MSI famous.
As the scenario is dynamic and unsure, the corporate will monitor and take a day-to-day resolution on fashions, strains or shifts to optimise sources for optimum effectivity, it added.
Semiconductors are silicon chips that cater to manage and reminiscence features in merchandise starting from vehicles, computer systems and cellphones to varied different digital gadgets.
The utilization of semiconductors within the auto trade has gone up globally in current occasions with new fashions coming with an increasing number of digital options similar to bluetooth connectivity and driver-assist, navigation and hybrid-electric programs.
Industry specialists really feel that enhanced demand for vehicles previously few months has put stress on the worldwide provide chains resulting in a scarcity.
SMG has an put in manufacturing capability of seven.5 lakh models every year. Together with MSI’s manufacturing capacity of 15 lakh models, Suzuki’s manufacturing capacity of vehicles in India is round 22.5 lakh models.
All models produced in SMG are provided to MSI.
Suzuki had established SMG in March 2014, aiming to safe manufacturing capacity in preparation for the car market progress in India, in addition to for growth of exports from the nation.
In October 2020, SMG grew to become the quickest manufacturing website of Suzuki to realize accrued vehicle manufacturing of 10 lakh models.