Maruti Suzuki total sales decline 9% YoY in Nov due to chip crisis

Carmaker Maruti Suzuki’s total sales fell 9.16% to 139,184 units in November 2021 as against 153,223 units in November 2020.

Total sales in the month include domestic sales of 113,017 units (down 18.67% YoY), sales to other OEM of 4,774 units (down 9.29% YoY) and its highest ever monthly exports of 21,393 units (up 137.59% YoY).

“The shortage of electronic components had a minor impact on the production of vehicles during the month. The shortage primarily affected the production of vehicles sold in domestic market. The Company took all possible measures to minimise the impact,” Maruti Suzuki India said in a statement on Wednesday.

Meanwhile, the car major is expecting an adverse impact on vehicle production in Haryana and Gujarat plants in December 2021 owing to electronic components supply constraint.

“Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of December 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat,” the car major had said in a statement on Tuesday.

Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 80% to 85% of normal production, it added.

Separately, Maruti Suzuki India announced a price increase of Rs 8,000 in EECO car model (all non-cargo variants) effective from November 30, 2021, due to introduction of passenger airbag.

Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

The car major’s net profit dropped 65.3% to Rs 475.3 crore in Q2FY22 as against Rs 1,371.6 crore in Q2FY21. Net sales rose 9.1% YoY to Rs 1,929.78 crore during the quarter.

Shares of Maruti Suzuki India were up 2.78% at Rs 7,283.40.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor