InvestorQ : Is it true that Maruti is planning production cuts to the tune of 40% in October 2021?
sara Kunju made post

Is it true that Maruti is planning production cuts to the tune of 40% in October 2021?

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Mary Joseph answered.
2 months ago
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It looks like the global shortage of semiconductors or electronic chips is really taking its toll on the auto sector and India’s largest passenger car manufacturer, Maruti, will be cutting output for the third month in a row. For the month of October, Maruti has already announced a 40% cut in production due to the supply of microchips failing to keep up with car output globally. This has become a global problem across industries.

Ironically, the cut in output comes across just ahead of the festive season, which normally accounts for 30-40% of the total sales of passenger cars during the year. Maruti will not only lose out the peak season but most likely also lose market share. This is going to be all the more prominent because other key players like Hyundai, Tata Motors, Kia and M&M are maintaining production schedules. In fact, smaller auto players are even scaling up output.

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