Due to semiconductor shortages, Indian automaker Mahindra and Mahindra expects a 20 percent to 25 percent drop in September vehicle production at its automotive division. Carmakers around the world have been hit by semiconductor shortages and have been warned that more pain is on the way due to stiff competition for chip deliveries from the sprawling consumer electronics industry.
This month, Mahindra will observe ‘no production days’ of about seven days in its automotive division plants, according to an exchange filing.
Maruti Suzuki, India’s largest automaker, said earlier this week that it expected production at its plants in the states of Haryana and Gujarat to be disrupted in September due to a shortage of semiconductors.
Mahindra stated that the drop in production volumes would have an impact on its revenue and profitability.
Following the production update, Mahindra shares fell nearly 1%.
However, the carmaker stated that the disruption had no effect on its tractor operations and exports, trucks and buses business, or 3-wheeler production.
