Maruti Suzuki Sheds Over 2% On Production Cut In October amid semiconductor shortages

At 11:00 am, Maruti Suzuki shares had been buying and selling decrease by 2.4 per cent at Rs 7,153 on the BSE

Maruti Suzuki shares shed greater than 2 per cent on the BSE in a weak market after the auto main introduced a large manufacturing reduce in October resulting from shortages in semiconductors. "It is currently estimated that the total vehicle production volume across both locations (Haryana and Gujarat) could be around 60 per cent of normal production," Maruti Suzuki mentioned in a submitting to the inventory exchanges. The reduce in output comes at an inopportune time for the corporate because the festive season has simply kicked in with the start of Navratri on October 7.

"..due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of October'21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat," Maruti Suzuki mentioned.

On August 4, SMG had mentioned it should shut manufacturing for 3 consecutive Saturdays in August and might also carry down working to only one shift owing to the semiconductor scarcity.

At 11:00 am, Maruti Suzuki shares had been buying and selling decrease by 2.4 per cent at Rs 7,153 on the BSE as in opposition to a 0.4 per cent decline within the benchmark indices.