Maruti lost 1.7 lakh production units in FY23 due to chip shortage, says RC Bhargava

Chairman of Maruti Suzuki RC Bhargava on Wednesday said the auto major faced several challenges in the past year, including a chip shortage that resulted in a production loss of 1,70,000 units in the financial year 2022-23.

Bhargava stated that the production loss in FY24 due to the chip shortage would be lower than that in FY23.

Despite this, he expects growth in the entry-level segment to be flat in FY24 due to affordability issues. Additionally, he revealed that Maruti's SUV share in total sales is 43 percent and that the company will follow the market on SUV sales.

Maruti Suzuki announced its earnings for the quarter ended March 2023. The company reported a revenue growth of 20 percent, with profits rising by an impressive 45 percent. However, the earnings were slightly below street estimates.

The company has also found a way to fit six airbags in their cars, which is a significant achievement in terms of safety. When it comes to electric vehicles, Bhargava stated that Maruti Suzuki cannot rely on only one technology to reach carbon neutrality. He expressed a desire for the company's battery plant and EV plants to be close to each other, which would allow for greater efficiency in production and transportation.