Chennai: Automotive Homegrown Major Mahindra and Mahindra (M & M) weigh the decline in production due to a shortage of global semiconductor chips that are ongoing, the executive said the company’s top.
“We are evaluating it, but haven’t reached the conclusion about it.
We see what we have in our inventory and balancing actions that need to be done,” said Executive Director M & M Rajesh Jejurikar.
M & M comments came after Maruti Suzuki announced plans to reduce production due to the chip crisis.
The lack of chips has begun to have an impact on the planned shipping plan of M & M products.
“We will conduct delivery announcements about XUV700 when we have more trust in the semiconductor situation,” Jejurikar said.
“At present the situation is very dynamic.” What has been about companies like M & M is a revival of pandemics in Asian countries such as Malaysia which is a semiconductor source hub.
“Malaysia is undergoing a serious wave of pandemic and because many semiconductors come from the Asian side, it affects inventory,” said CEO M & M Anish Shah.
Meanwhile, M & M reported RS 424 Crore’s profit in the first quarter of fiscal 2021 behind an enhanced demand for the model.
Comparatively, it made a loss of Rs 49 Crore a year earlier.
Income is enlarged 60% to RS 19,172 Crore.
Although demand increased compared to last year when Covid induces rural lock, M & M remains under pressure as “commodity inflation and semiconductor supply problems continue to be concerned”.