1 min read.Updated: 02 Sep 2021, 06:47 PM ISTLivemint
Mahindra automotive division continues to face supply shortages of semiconductors. The covid restrictions in various parts of the world have further worsened the chip shortage crisis
Mahindra XUV700 was launched last month but the company is yet to commence the bookings for the SUV. The company is facing an acute crisis due to the shortage of semiconductors. However, Mahindra and Mahindra has assured that there will be no material impact on the XUV700 production ramp-up and launch plans.
The date of commencement of bookings will be announced soon, the company said in its latest release explaining the chip shortage and its impact on the production line.
Mahindra automotive division continues to face supply shortages of semiconductors. The covid restrictions in various parts of the world have further worsened the chip shortage crisis.
In view of the ongoing crisis, Mahindra has announced that the company will be observing ‘No Production Days’ of around 7 days in its Automotive Division plants in the month of September, 2021.
This move is estimated to result in a reduction in production volumes of the Automotive Division in September, 2021 by 20-25%. According to a release by the company, the Revenue and profitability will be impacted in line with the fall in production volumes. In order to offset the negative impact, the company is also taking various cost optimisation measures.
The company’s Tractor operations, Exports, Trucks and Buses business and 3-wheeler Production are unaffected by the above disruption. The company is reviewing the supply situation and making efforts to minimize the impact.