In the last month of the calendar year 2022, Maruti Suzuki anticipated producing 1,83,000 units overall at its plants in Gurgaon, Manesar, Gujarat (Suzuki Motor Corporation), and Bidadi plants (Toyota Kirloskar Motor). The actual manufacturing schedule, which now includes domestic and export volumes, has been lowered to an anticipated 129,000 units, which is the lowest monthly vehicle production in the current fiscal year.
Maruti Suzuki anticipated production of 1,83,000 units in the last month of December
See the Production Data Table below:
| Maruti Suzuki India Production , Domestic & Export Sales | |||
| FY2023 | Production | India Sales | Exports |
| April’22 | 1,52,954 | 1,21,995 | 18,216 |
| May’22 | 1,60,459 | 1,24,474 | 27,018 |
| June’22 | 1,40,748 | 1,22,685 | 23,753 |
| July’22 | 1,79,972 | 1,42,850 | 20,003 |
| August’22 | 1,56,041 | 1,34,166 | 21,382 |
| September’22 | 1,73,929 | 1,48,380 | 20, 698 |
| October’22 | 1,53,550 | 1,40,337 | 19,946 |
| November ‘22 | 1,51,326 | 1,32,395 | 19.738 |
| Total | 12,68,979 | 10,67,282 | 1,70,754 |
Industry sources have revealed that due to chip shortage , there is a gloomy outlook for entry level cars such as the recently launched Alto and cost-effective S-Presso model, and is impacting the strong varients of the carmakers flagship model, and are among the main causes for the downward revision in volumes.
Chip Shortage is contributing to the downward sales trend of Entry Level Cars
The Break-up of Maruti Suzukis Industry Limited’s initial plans to manufacture Cars in the month of December:
| Maruti Suzuki Manufacturing Plants | Planned Production Volume for December |
| Gurgaon and Manesar | 110,000 units |
| Gujarat | 55,000 units |
| Bidadi, Gujarat | 18,000 units |
Revision to Production Plans by Maruti Suzuki Industry Limited
| Maruti Suzuki Manufacturing Plants | Revised Production Volume for December | % Drop |
| Gurgaon and Manesar | 77,000 | 30% |
| Gujarat | 40,000 | 27% |
| Bidadi, Gujarat | 12,000 | -33% |
Shortage of Semi-conductor chips and its impact
Chip procurement has emerged as the biggest setback in case of the Grand Vitara , and in the case of Hybrid version , the full speedometer console is in short supply and impacting the manufacturing operations at Toyota’s plant in Karnataka, where two badge engineered model is built for domestic as well as export markets.
Chip procurement impacting the production of Grand Vitara
Speedometer Console is in short supply and is impacting the manufacturing of the Hybrid version of Grand Vitara
The Grand Vitara makes up about 70% of the anticipated 12,000 units and will be sold domestically and internationally by Maruti Suzuki India Limited. Toyota will purchase the remaining 3,600 Urban Cruiser Hyryder vehicles for retail sale through its dealerships in India. This latest SUV model is jointly produced by the two Japanese brands as a part of the Toyota-Suzuki Grand Alliance.
Chip shortage has led to widespread shortage of anti-breaking system which has impacted Maruti Small Car production which will persist till end-2024
Chip shortage is also impacting the Maruti Suzuki’s small car production and is expected to continue till end-2024 and this has caused widespread shortage of anti-breaking system.
Weak Market demand for entry level cars:
Demand for entry level cars have nosedived on weak market sentiments. The planned production of Alto was around 15,000 – 16,000, however on account of weak market demand for the car only around 6,000 cars are being manufactured every month.
RC Bhargava, Chairman of Maruti Suzuki, recently warned that despite the entire passenger vehicle market expanding by about 8%, the hatchback sector is anticipated to contract in FY2024. Further, he said that purchasers with low incomes have been severely hurt by inflation and cannot afford an entry-level car.
Inflation has impacted the disposable income of the consumers
The demand for Grand Vitara Hybrid has plummeted, whose on road price has crossed well above Rs 20 Lakh mark, which has directed customers to head towards Maruti Nexa showroom and enquire about cheaper , mild hybrid variants.
Additionally, after hitting a 42-day holiday peak in the months of September and October 2022, the demand for passenger cars in general is already waning. Industry analysts expect that inventory at passenger vehicle dealers will rise from 50,000 units to over 250,000 units as a result of declining customer activity near the end of the year.
In the first 8 months of FY 23, million units were sold
With 132,395 units shipped in the month of November 2022, the company’s cumulative wholesales have surpassed one million units (1,067,282 units) in the first eight months of FY2023, representing a 31 percent year-over-year rise (April-November 2021: 811,809).
While the company’s UV range, which includes the Brezza, XL6, Ertiga, and Grand Vitara, clocked 32,563 units in November and is therefore taking charge of its growth, which is also coming from the six pack of the Wagon R, Swift, Baleno, Dzire, Ignis, and Celerio, which reported a 28 percent uptick in sales to 72,844 units last month, the Alto and S-Presso sold 18,251
Despite the fact that the Indian passenger vehicle market is anticipated to reach a new peak of 3.8 million units in CY2022, analysts believe headwinds in the form of high inflation and interest rates could become roadblocks in maintaining demand going forward, while supply-side and logistical challenges are also likely to persist.
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