After causing production loss of 46,000 units in previous quarter, semi conductor shortage in Maruti Suzuki India might further increase the order backlogs of its certain models, said a company official. The company expects the problem to persist in next few quarters. The company's pending bookings could stretch to 3.69 lakh units.
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Out of the total models of the company that are have stretched bookings, Ertiga leads the pack with close to 94,000 bookings, reports PTI. Company's other models that have kept waiting customers for too long are Grand Vitara and Brezza. They have an order backlog of around 37,000 and 61,500 units, respectively. Moreover, the company has received around 22,000 and 12,000 bookings, for Jimny and Fronx.
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The company has been facing the issue since past quarter and suffered due to it in the October-December quarter. MSI witnessed a loss of close to 46,000 units in the last quarter, the persistent problem is expected to impact company's production in the ongoing quarter as well. The semiconductor shortage is expected to persist for a few more quarters.
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"The semiconductor shortage still continues. Last quarter we lost 46,000 units due to this issue and this quarter also the problem continues for a few models," Maruti Suzuki India Senior Executive Officer (Marketing and Sales) Shashank Srivastava told PTI.
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He further said that it is difficult to predict exact timelines about when there will be normalcy in its supply to match the production capacity. Production of MSI's Jimny and Fronx, will soon begin later in March in Gurugram and Gujarat.
PV segment expected to grow 5-7 per cent next FY
Looking at the growth outlook of the private vehicle industry, Shashank Srivastava said PV segment is expected to post a growth of 5-7 per cent in the next fiscal year over 2022-23. He also noted that in the PV industry, the sports and utility vehicle will continue to be the leader with a maximum share of 42.6 per cent. Hatchbacks will continue to be the runner up with 35 per cent of share in the industry.
"So far the passenger vehicle industry this fiscal year has witnessed sales of 35.5 lakh units. It seems the industry will end the year with 38.8 lakh units mark, the highest ever number till date," he said.
He said that last year, the PV industry saw the sales of 30.7 lakh units. Hence, this time the sales are expected to boost by around 26 per cent this financial year.
He expressed confidence on the growing demand of MSI vehicles in the market, and said that the company's projections for next year are between 40.5-41 lakh units which is roughly a growth of 5-7 per cent. That's why MSI is expected to perform better than the industry, which might be affected by the loss of demand due to rising vehicle loan rates.
Rate hike might impact demand
Notably, after RBI repo rate hike, several banks have started increasing their loan rate, that discouraged loan borrowings.
"Post the repo rate hike many banks have increased the loan rates...the rates are clearly going up and that obviously has an impact on the overall demand," he added.
Apart from RBI repo rate hike and inflation, Shashank Srivastava also mentioned positive factors that balanced these factors to maintain the market momentum. He said that promising growth of Indian economy will help in countering the impact of negative factors. In addition to that, the government spending on infrastructure has an overall positive impact on the demand scenario.
Talking about the automaker's performance, Shashank shed light upon its domestic wholesale data. The company's wholesales rose 11 per cent to 1,55,114 units in February as compared with 1,40,035 units in the same month last year. He also told that the auto major has already dispatched 15.08 lakh units in the current fiscal so far, which marks a 23 per cent growth from 12.27 lakh units in April-February period of last financial year.
(With inputs from PTI)
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