Semiconductor shortage | Maruti Suzuki to cut vehicle production by 30-40% in August: Report

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26 Aug, 2025 12:21

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The ongoing semiconductor shortage may reportedly force Maruti Suzuki to cut vehicle production in August by 30-40 percent, or nearly three-fourths of the 5 percent annual production cut forecast earlier. The company is now expected to produce 110,000-120,000 units this month.

For Maruti Suzuki, this would cause a loss of 50,000-60,000 units in production and Rs 2,500-3,000 crore in revenue in August, as per an ET Auto report.

Read | How bad is the semiconductor chip shortage likely to get?

"Maruti Suzuki was expected to lower its production plans for this year by 5 percent or 70,000-80,000 vehicles. The output cut in August alone would be about three-fourths of that," people in the know told the publication.

The semiconductor shortage had already hit Maruti Suzuki’s contract manufacturing company Suzuki Motor Gujarat (SMG), which will shut production for three consecutive Saturdays in August.

Read | Tata Sons to make semiconductors, leveraging opportunity arising out of global chip shortage

The shortage has now affected the company's Manesar facility in Haryana.

"Production at Manesar is likely to go down to 45,000 units in August versus the average production of 65,000 units a month. At Suzuki Motor Gujarat, the output is likely to be cut by 65-70 percent to 15,000-20,000 cars," sources added.

Moneycontrol could not independently verify the report.

Also read | Germany's Infineon sees chip shortages until 2023

Mahindra & Mahindra (M&M), MG Motor and Ford India also had to undertake production cuts due to the chip shortage.

M&M is yet to begin full production of its latest launch XUV700 due to chip shortage. As per a report in Team-BHP, around 8,000 semi-finished cars are waiting for chips at Mahindra's Chakan plant.

"The plant will receive around 1,000-2,000 Electronic Control Unit (ECU) in September, of which only 500 will be allotted to the XUV700," it said.

Moreover, Mahindra & Mahindra’s most coveted product, the Thar, has a waiting period of almost a year, the longest one in the car market, at present.

Meanwhile, Tata Group Chairman N Chandrasekaran recently said that the firm is planning to foray into semiconductor manufacturing.

Read | The chips are down: why there's a semiconductor shortage

While unveiling the group’s plan to enter the semiconductor business, Chandrasekaran said, “The Tata group has already set up a business to seize the promise of high-tech manufacturing for electronics. A domestic electronics industry could unlock $1 trillion in GDP and create millions of jobs.”