Semiconductor shortage: M&M announces ‘no production days’; XUV7OO manufacturing to remain seamless - Check details

Indian automobile manufacturer giant Mahindra and Mahindra (M&M) on Thursday said that it will be observing ‘No Production Days’ of around 7 days in its automotive division plants in the month of September.

As per the information provided by the company in an exchange filing, the company's automotive division is facing supply shortages of semiconductors, which has got further accentuated due to Covid lockdowns in some parts of the world.

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“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.

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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, it said.

M&M further informed that 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," M&M added.