The Indian subsidiary of Japanese automaker Maruti Suzuki remains "vulnerable to supply-side bottlenecks" as the crisis over chip shortage continues globally, reported PTI, citing Maruti Suzuki India (MSI) Executive Officer (Corporate Affairs) Rahul Bharti, on Sunday.
The company looks to source electronic components from multiple sources in FY24. The country's largest carmaker, which could not produce around 1.7 million units last fiscal year due to a semiconductor shortage, is also coming up with measures to reduce the use of certain kinds of chips in its cars.
"The problem (the chip shortage) is a global one. It could affect different models, different companies, and different modules differently. All our efforts are to organise supplies through multiple sources," PTI quoted Maruti Suzuki India (MSI) Executive Officer (Corporate Affairs) Rahul Bharti as saying in an analyst call.
He noted that the company is working to do away with certain chips in some models and trims where the requirement is superfluous.
"If there is a particular semiconductor in a particular variant of a model that is superfluous and not required, we are removing all such needs so that our consumption is minimal." All such efforts are going on, including negotiations on a global scale. Having said that, we are still vulnerable to supply-side bottlenecks," Bharti noted.
When asked about the company's position in the ongoing fiscal year, he said, "We do not have full-year visibility, but at least Q1 will be tough, and broadly, the uncertainty continues."
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers, and cellphones to various other electronic items.
The usage of semiconductors in the auto industry has gone up globally in recent times, with new models coming with more and more electronic features such as Bluetooth connectivity, driver assistance, navigation, and hybrid-electric systems.
Responding to a query, Bharti confirmed that the strong hybrid technology introduced in the Grand Vitara could be launched in more models.
"We have had a very positive response." "We plan to bring it (the strong hybrid) in more models also," he stated.
On the sales growth outlook for this fiscal year, Bharti said industry body SIAM estimates the passenger vehicle industry to grow between 5-7 percent.
"Maruti Suzuki should grow well beyond this." "So we would be better than the industry," he noted.
MSI CFO Ajay Seth noted that the company has lined up Rs 8,000 crore in capex in the current fiscal year, with capital set to go into the construction of the Sonipat plant, the development of new models, and the annual maintenance of existing infrastructure.
He noted that the company has strengthened its presence in the sports utility vehicle segment with the Brezza and Grand Vitara, thereby increasing its market share in the vertical.
"Moving forward with Jimny and Fronx, the SUV portfolio of the company will be further strengthened." "With this, the company aims to secure a leadership position in the SUV segment," Seth said.
He noted that the company believes in offering products and technologies that are relevant to the Indian market context.
The Indian subsidiary of Japanese automaker Maruti Suzuki remains "vulnerable to supply-side bottlenecks" as the crisis over chip shortage continues globally, reported PTI, citing Maruti Suzuki India (MSI) Executive Officer (Corporate Affairs) Rahul Bharti, on Sunday.
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