According to this leaked internal letter, Maruti Suzuki might experience a 60% drop in production capacity this month. The reason for this is the electronics shortage, particularly the semiconductor supply. Maruti is not the first OEM to suffer the adverse consequences of the semiconductor shortage. The likes of Mahindra and Honda have already suffered production decline earlier owing to the same cause. As a matter of fact, the semiconductor shortage is a global phenomenon and spread across various industries. Consumer electronics being the major one. In fact, the semiconductors were consumed in the consumer appliances due to the increased need during the lockdowns. The automobile industry requires a relatively small amount of semiconductors and hence, suffered the brunt of the consequences. We can hope that the production of the semiconductors and the supply will resume soon.
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