Mahindra & Mahindra flags 82 high-risk auto parts in supply chain review

Mahindra & Mahindra has identified 82 auto part families and nine commodities as high-risk in its supply chain. The company conducted a detailed review to address potential disruptions from geopolitical and input cost uncertainties. This assessment follows the company's FY26 results.

Key Highlights

• Mahindra & Mahindra identified 82 high-risk auto part families and nine commodities in its supply chain
• Company reviewed over Rs 1.06 lakh crore in sourcing across 100000 part families and 40 commodities
• Corrective actions include localisation alternate vendors inventory buffers and component redesign

Comprehensive Supply Chain Assessment

Group CEO and MD Anish Shah explained that Mahindra & Mahindra mapped its entire procurement base. The review covered over Rs 1.06 lakh crore worth of sourcing. It included more than 100,000 auto part families and 40 commodities. The company evaluated categories using parameters such as geopolitical exposure, raw material risks, supplier concentration, regulatory challenges, and logistics constraints.

The structured effort aimed to identify vulnerabilities in the supply chain. After the assessment, Mahindra & Mahindra began implementing corrective actions. These include increasing localisation, developing alternate vendors, building inventory buffers, and redesigning components to reduce reliance on specific inputs.

Measures to Enhance Resilience

Mahindra & Mahindra has strengthened its monitoring mechanisms. The company now tracks LPG availability for nearly 400 suppliers daily. This step highlights the importance of energy access for production continuity. The automaker also monitors broader ecosystem factors, such as worker-level supply conditions within its vendor network.

This approach reflects a wider industry shift from cost-driven models to resilience-focused frameworks. Recent disruptions, including the pandemic and ongoing geopolitical events, have influenced this transition. Mahindra & Mahindra’s strategy now emphasizes early risk identification and system flexibility.

Management stated that the improved supply-chain framework has supported stable operations in recent quarters. The company will continue to prioritize supply chain resilience as uncertainties persist.

Also Read: Mahindra XUV 7XO hybrid & flex fuel variants spied testing in India

CarBike 360 Says

Mahindra & Mahindra’s identification of 82 high-risk auto part families underlines how seriously automakers are now treating supply chain resilience. By closely tracking supplier concentration, raw material exposure and logistics bottlenecks, the company is aiming to reduce disruption before it hits production. The move reflects a wider industry shift toward smarter risk management and stronger sourcing strategies.