Chip shortage: Mahindra to shut down production for 7 days

The semiconductor shortage will not affect the production of the XUV700.

Mahindra has announced that it will shut down its manufacturing plants for 7 days due to a shortage of semiconductors.

According to a regulatory filing, Mahindra's automotive division has been facing a supply shortage of semiconductors, and therefore, it has decided to observe about seven 'No Production Days' in September 2021.

The production cut is estimated to reduce volumes by 20-25%. It will also affect revenue and profitability. To limit the impact, the company will be taking various cost optimization measures.

Mahindra has confirmed that the semiconductor shortage will not affect the production of the XUV700. Exports and tractor, truck and bus as well as 3-wheelers businesses will also remain unaffected.