Mahindra Faced Production Loss Of 32,000 Due To Chip Shortage

Mahindra Faced Production Loss Of 32,000 Due To Chip Shortage

The Auto Market has been globally affected by the shortage of semiconductors, Before lockdown made the situation tough for the auto industry. Facing the massive challenge in the India Auto Market, Every Auto Manufacturer face the zero sales with in a month. Mahindra in fact has said that it has witnessed a loss of production of 32,000 units across its portfolio in the second quarter because of the semi-conductor shortage. Addressing the media at the company's financial results, Anish Shah, MD and CEO Mahindra brought out these figures.

However, the explanation of this loss of production because of the semi-conductor shortage was provided by Rajesh Jejurikar, Executive Director, Auto and Farm Sector, Mahindra. He said, "Q2 is probably the worst of the chip shortage that we have seen and the shortages that happened were on basic chips. It was impacting primarily the ECU units that would go into the engines and also our LCVs like the Supro and the Jeeto. And so, it was affecting our entire portfolio. It was a simple IC which costed $3 and that was made in Malaysia. The country went into COVID-19 lock down for 3 to 4 weeks, and that completely dried up the supply chain."

The production of newly launched cars like the Thar and the XUV700 too have been affected due to this.

Mahindra was gearing up to launch the Marazzo with an automatic gearbox, but that too has been delayed owing to the chip shortage which has subsequently hampered production.