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

India’s major automaker Tata Motors could cut production due to the continued short supply of semiconductors. The company’s sales update stated that the semiconductor shortage continues to impact the global auto sector due to which the company must cut production. 


Lockdowns in East Asia have increased and worsened the supply situation. As a result, Tata Motors is forced to reduce production volumes in the coming months. The company has not yet stated the extent of production cuts and has not provided any figures related to the production cut. 


Tata Motors is working on mitigating the semiconductor shortage situation by procuring chipsets from the open markets and approaching extended supply chain partners. 


In August, Tata Motors sold 57,995 units, 58pc higher than August 2020. 


Maruti Suzuki and M&M have also slashed production for September by 40pc and 20-25pc, respectively. 

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