Semiconductor shortage improves, though normalcy in supplies will still not be achieved: Maruti Chairman

Maruti Suzuki India (MSIL) has said that the semiconductor shortages still impacted production but to a lesser extent and the company expects that during the current year, there will be further improvements, though normalcy in supplies will still not be achieved.

“Production increased by 19 per cent and was the highest ever (in FY23). Our sales fell short of two-million by a whisker. Our turnover and profits were at record levels. Semiconductor shortages still impacted production but to a lesser extent. I expect that during the current year, there will be further improvements, though normalcy in supplies will still not be achieved. Your company, with the active support of Suzuki Japan, has been working to strengthen its portfolio of products to meet the changing market situation,” RC Bhargava, Chairman, MSIL, said in the company’s annual report..

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He said the company has four very well-accepted SUVs in the market and is on way to assume leadership in this segment, adding that MSIL will gradually keep increasing its market share that had declined in the last two-three years.

In the annual report titled ‘Maruti Suzuki 3.0’, Bhargava noted that “It took us 40 years to create a capacity of tow-million units and Suzuki Motor Corporation (Japan) helped in this process by establishing the Gujarat facility. Your company now has to add the next two-million in a period of nine years.”

Expressing his confidence in the global economy, Bhargava said, “Our exports rose to 2,59,000 units last year. We expect the demand for exports to continue to grow and export volumes are projected at 7.5-8 lakh cars by FY31.”

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Talking about small cars, he said that since there are no prospects of demand for the smaller entry-level car market recovering to the growth rates of the past, MSIL was restructuring its production facilities to conform to the realities and what it was projecting for the future.

“Despite the slowdown in this category hatchbacks and small cars will remain a very important part of our total portfolio. The rate of growth of these cars is expected to be less than two per cent a year but the industry volume is almost a million cars a year with MSIL having a share of about 70 per cent. Accordingly, your company intends to do whatever is necessary to meet customer needs in this segment in the best possible manner,” he added.

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