Bengaluru: Car maker Mahindra and Mahindra Ltd said on Thursday expect a decline of 20% -25% in the production of September vehicles due to semiconductor deficiencies, after supply chain disorders due to a pandemic.
Global Carmaker has been hit by a lack of chips and has warned pain further because of the intense competition from the consumer electronics industry for semiconductor delivery.
Mahindra said its income and profit-profit would be affected by the decrease in production volume, while the production of tractors, trucks, buses and 3 wheels was not affected.
The company will have around seven “no production day” at the automotive division factory this month, the company said in archiving.
Earlier this week, Maruti Suzuki India Ltd., the country’s top car maker, said that it expects production in its factories in Haryana and Gujarat countries will be affected in September due to lack of semiconductors.
Indian car makers reported August sales on Wednesday, with most of them to see recovery from the previous year.
However, the sale of Mahindra passenger vehicles in August fell 24%, Maruti sales fell 22.8% and sales of Tata Motors Ltd fell 7.2% month on the month.
Globally, Ford Motor Co., Honda Motor Co.
Ltd, General Motors Co and Volkswagen AG, has been caught red-handed by a lack of prolonged global chip, forcing a lot of unemployed production or reducing.
In July, Tata Motors warned that expecting a supply of crunch chips in the second quarter became greater than the first.
Because of the shortcomings and price increases, the car maker focuses on making a high margin model and has continued several costs to customers.
Maruti climb the price of four times this year, while Tata Motors and Mahindra has also increased prices.
On Thursday, Mahindra’s shares fell by 1.5% after the update, but recovered several losses at 540 GMT.
Chip lack: M & M to have 7 production days
