Maruti Suzuki shares shed more than 2 per cent on the BSE in a weak market after the auto major announced a massive production cut in October due to 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 said in a filing to the stock exchanges. The cut in output comes at an inopportune time for the company as the festive season has just kicked in with the beginning 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 said.
On August 4, SMG had said it will shut production for three consecutive Saturdays in August and may also bring down working to just one shift owing to the semiconductor shortage.
At 11:00 am, Maruti Suzuki shares were trading lower by 2.4 per cent at Rs 7,153 on the BSE as against a 0.4 per cent decline in the benchmark indices.