india

Chip shortage transient, likely to resolve by 2022: Maruti chairman R.C. Bhargava

MSIL output hit only partly: Bhargava

The semiconductor shortage problem faced by the automobile industry is temporary and is expected to be over by 2022, Maruti Suzuki India Ltd. chairman R.C. Bhargava said on Tuesday. He also said that the company hadn’t faced a major impact due to it though production had been partly hit.

Addressing shareholders at Maruti’s annual general meeting, held virtually, he also said the carmaker was looking at the electric vehicles space but would enter it only when it becomes feasible for customers in terms of affordability and also for the company to operate without making a loss.

“The shortage of semiconductors is a temporary problem, partly due to COVID-19. Our estimation is that this… will be over by 2022,” he said, responding to a shareholder query.

“There has been a bit of a hit on production… we have had to adjust but there is no major loss that we have to be concerned about,” Mr. Bhargava added. He also said MSIL had outlined a capex of ₹4,500 crore in the ongoing fiscal year.

Source: Read Full Article