Suzuki asks Indian suppliers to halt production one day a week to maintain quality and prepare for higher output

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Summary · why it matters

Suzuki has asked its Indian suppliers to shut down production one day a week for machine maintenance. According to two people familiar with the matter, the company aims to prevent unexpected stoppages and maintain quality ahead of planned production increases. It is said to be the first time Suzuki has made such a request of Indian suppliers. Its Indian subsidiary Maruti Suzuki is preparing to raise annual production capacity from about 2.4 million units to 4 million units by 2030. According to the sources, Suzuki President Toshihiro Suzuki met with Indian suppliers in August and asked them to plan capacity on the basis of a six-day workweek. Maruti Suzuki subsequently asked suppliers to sign affidavits by the end of the year confirming that production lines for its parts would not operate seven days a week. According to the sources, Suzuki is asking suppliers to shift to a model of 20 hours a day and six days a week by September 2027, which would give production machinery four hours of rest each night and a full day for maintenance. As output rises, there are concerns that keeping machines running every day would increase the risk of factory accidents, unexpected stoppages and quality problems.

Impact on assets 2

Electrification & Mobility▲
Suzuki Motor Corp.
7269
▲ PositiveSupplyrelevance

Suzuki is directing Indian suppliers to adopt six-day/20-hour schedules to prevent stoppages and support its planned capacity ramp to 4 million units by 2030.

Semiconductors▲

Off-coverage companies 1

Maruti Suzuki Indiai
Private▲ PositiveSupplyrelevance

Maruti Suzuki is preparing to raise annual production capacity from about 2.4 million to 4 million units by 2030 and is asking suppliers to sign affidavits ensuring parts lines do not run seven days a week.