Semiconductor shortage grips Automakers : Mahindra to halt production for 7 days in Sept


Biznextindia : Mahindra & Mahindra on Thursday said, it’s Automotive Division continues to face supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the World. Due to this the company has decided to halt production for around 7 days in the current month/

“ The Company will be observing ‘No Production Days’ of around 7 days in its Automotive Division plants in the month of September, 2021, which is estimated to result in reduction in Production Volumes of the Automotive Division in September, 2021 by 20-25%. The Revenue and profitability will be impacted in line with the fall in production volumes. The Company is taking various cost optimisation measures to limit the impact” the company has informed the stock market.

“ There will be no material impact of the above event on the XUV7OO production ramp-up and launch plans. The date of commencement of Bookings will be announced soon. The Company’s Tractor operations, Exports, Trucks and Buses business and 3-wheeler Production are unaffected by the above disruption. As the situation is dynamic, the Company is carefully reviewing the supply situation and all efforts are being made to minimize the impact” it added.

Earlier, another leading automaker Maruti Suzuki had announced that due to the semi-conductor shortage, it’ll limit its monthly vehicle production around 40 percent at its Haryana and Gujarat plants.

Chips are central to the functioning of modern-day vehicles, and without access to the components, many automotive firms have been forced to slow down production. The COVID-19 pandemic has caused a huge surge in the purchase of electronic devices like PCs and tablets, and silicon manufacturers have been unable to keep up with ever-expanding demand, resulting supply shortage.

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