India's largest car maker loses nearly two thirds of its profit to chip shortage

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India's largest car maker loses nearly two thirds of its profit to chip shortage
BCCL
Automobile major Maruti Suzuki India's Q2FY22 net profit declined by over 65 per cent on a year-on-year basis.

Net profit fell to Rs 475.3 crore during the quarter under review from Rs 1,371.6 crore in Q2FY21.

However, the company's net sales for the quarter under review rose to Rs 19,297.8 crore from Rs 17,689.3 crore earned in Q2FY21.

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"The company sold a total of 379,541 units during the quarter constrained by a global shortage in the supply of electronic components," the auto major said in a statement.

"Sales in the domestic market stood at 320,133 units. Exports were at 59,408 units, the highest ever in any quarter."

During the same period of the previous year, the company had clocked a total sale of 393,130 units including 370,619 units in domestic market and 22,511 units in the export market.

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"An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models."

"The company had more than 200,000 pending customer orders at the end of the quarter for which the company is making all efforts to expedite deliveries."

According to the auto major, the quarter was also marked by an unprecedented increase in the prices of commodities like steel, aluminium, and precious metals within a span of one year.

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"The company made maximum efforts to absorb input cost increases off setting them through cost reduction and passed on minimum impact to customers by way of car price increase."

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