Semiconductor chip supply constraints put brakes on auto OEM ramp-up

Firms struggle to increase production as supplies yet to fully normalise

The semiconductor chip supply-chain nightmares that had shaken up the automotive (auto) industry during the pandemic may be behind us. But with component supplies yet to fully normalise, automakers are struggling to ramp up production to full capacity.

Ajay Seth, chief financial officer of the country’s largest passenger carmaker Maruti Suzuki India (MSIL), highlighted during the company’s third-quarter (Q3) results of 2022-23 (FY23), the supply shortage of electronic components had marginally increased in comparison to the previous quarter.

“The company could not produce 46,000 vehicles in Q3. Limited visibility on the availability of electronic components is a challenge in planning production. The