Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mahindra and Mahindra (M&M) projected that auto production and sales volumes will be affected as the company faces shortage of necessary parts — semiconductors. 


A recent shortage of semiconductors or micro-processors has left several auto manufacturers in a distressed situation which could lead to lower output and sales volumes. M&M has specifically said that shortage of parts will affect their March quarter (Q4) output and sales. 


Bosch, a major supplier of auto parts announced that they are facing a major shortage of imported components which is putting the company in an unfavourable situation where it can’t cater to the needs of the automotive sector. Demand for chips has surged suddenly backed by high consumption from consumer electronics and 5g connectivity industry. 


M&M said the company is closely engaging with Bosch and assessing the likely production loss in the final quarter. The exact projection of a drop is sales and production is difficult to ascertain at the current stage, said M&M. The company also said that the auto sales and production in December is least likely to be affected. 

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