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Mahindra announces seven ‘No Production Days’ in Sept; volume to dip 20-25%

Mahindra announces seven ‘No Production Days’ in Sept; volume to dip 20-25%

There will be no impact on the production ramp-up of Mahindra XUV700 and the launch plans. The date of commencement of bookings will be announced soon

Mahindra faces semiconductor shortage Mahindra faces semiconductor shortage

Mahindra and Mahindra said in a statement on Thursday that the company’s automotive division continues to face supply shortage of semiconductors, which has been further aggravated due to lockdowns in certain parts of the world. Hence, it said, it will observe ‘No Production Days’ of around 7 days in September. This is expected to reduce production volume in the month of September by 20-25 per cent.

The auto giant further stated that they are taking various cost optimisation measures in order to limit the impact.

However, there will be no impact on the production ramp-up of XUV700 and the launch plans. The date of commencement of bookings will be announced soon, it stated. Likewise, the tractor operations, exports, trucks and buses business and 3-wheeler production will remain unaffected.

Mahindra said that the situation is dynamic and that the company is carefully reviewing the supply situation, and all efforts are being made to minimise the impact. Revenue and profitability will be impacted with the fall in production volumes.

On Wednesday, Mahindra stated that there was a growth of 17 per cent in passenger vehicle sales, and 18 per cent increase in utility vehicle sales in August. Exports also increased by 172 per cent from 1,169 units in FY21 to 3,180 units in FY22.

It stated that the global supply shortage of semiconductors has also been a big focus for them. Veejay Nakra, CEO of Automotive Division, M&M said, “We sold 30,585 vehicles overall and registered a growth of 17 per cent in the passenger vehicles segment, over the same period last year. Growth momentum in exports continued with the sale of 3,180 vehicles, registering an increase of 172 per cent. August has been an exciting month with the reveal of the much-anticipated XUV 700 and the all-new visual identity crafted exclusively for our SUV portfolio. Supply of semiconductors continues to be a global issue for the auto industry and has been a major area of focus for us.”

Also read: Mahindra PV sales up 17% in Aug
Also read: Raul Rebello appointed as new Mahindra Finance COO

 

 

Published on: Sep 02, 2021, 11:35 AM IST
Posted by: anwesha madhukalya, Sep 02, 2021, 11:29 AM IST