Mahindra and Mahindra said on Monday that production of its commercial vehicles declined 14.1 per cent year-on-year in August. In August 2021, its commercial vehicle production was at 13,404 units, while in August 2020, it was 15,603 units.
Mahindra sold 8,841 units in August 2021, while it had sold 15,299 in August 2020. However, when it comes to exports, Mahindra exported more than thrice the number of units in August 2021. The auto giant had exported 685 units in August 2020 but exported 2,237 units in August 2021.
Not only August, Mahindra’s September production is also likely to be on the lower side. The company had issued a statement earlier this month that it will observe ‘No Production Days’ of around seven days in September. The company stated that the automotive division continues to face a supply shortage of semiconductors. The company expects production volume to decline by 20-25 per cent this month.
It had said that there will be no impact on the production ramp-up of XUV700 and its launch plans. Tractor operations, exports, trucks and buses business and 3-wheeler production will remain unaffected too, it said.
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, the company highlighted in a filing.
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