India’s major auto manufacturer, Mahindra & Mahindra (M&M) plans to halt production for seven days in September due to the shortage of semiconductors.
Semiconductor shortage is more pronounced and has widened in some parts of the world, stated M&M in their Sep 2 press release. As a result, the company has planned to halt production for seven days in September, which would result in a production cut by 20-25pc.
A drop in production volumes will impact profitability and revenues, however, the company is taking measured to limit the impact. M&M’s tractors, trucks & busses, three-wheelers and exports will remain unaffected by the loss of production days.
India’s largest carmaker by market share, Maruti Suzuki, also announced cuts, expecting a drop of 40pc in production levels.