Indian automobile manufacturer Mahindra and Mahindra (M&M) will observe seven “No Production Days” in September due to the supply shortage of semiconductors.
The company said that its automotive division faces shortage of semiconductor supply, which has got further accentuated due to the Covid-induced lockdowns in some parts of the world.
Mahindra and Mahindra estimates reduction in production volumes by 20-25 percent as a result of the No Production Days.
“The revenue and profitability will be impacted in line with the fall in production volumes. The company is taking various cost optimization measures to limit the impact,” the Indian automobile manufacturer said in a regulatory filing on Thursday.
Mahindra and Mahindra also said that there will be no material impact on XUV7OO production ramp-up and launch plans. Mahindra and Mahindra will announce the date of commencement of bookings for XUV700 soon.
Mahindra and Mahindra said the company’s tractor operations, exports, trucks and buses business and three-wheeler production will be unaffected.
