02 Sep , 2021 By : Kanchan Joshi
Automotive manufacturer Mahindra & Mahindra (M&M) on Wednesday said that it will observe ‘No Production Days’ of around 7 days in September as its automotive division has continued to face supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the world.
“Consequently 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%," M&M said in an exchange filing.
The company's revenue and profitability will be impacted in line with the fall in production volumes. Though, M&M said that the firm is taking various cost optimisation measures to limit the impact of the same.
M&M further added that the 'no production days' will not affect the company's tractor & 3-wheeler businesses. Also, there will be no material impact of the above event on the XUV7OO production ramp-up and launch plans and the date of commencement of Bookings will be announced soon, it added.
M&M's announcement comes a day after carmaker Maruti Suzuki on Tuesday informed that it expects production at its plants in the states of Haryana and Gujarat to be impacted next month due to a shortage of semiconductors. The total production volume across both Haryana and Gujarat could be around 40% of normal output, Maruti Suzuki said.
The global shortage of semiconductor chips is hurting automobile production even as demand is recovering well from the second wave of the pandemic.
Shares of M&M were trading nearly 1% lower at Rs762 per share on the BSE in Thursday's early deals.
0 Comment