Mahindra expects drop in production, sales volume in last quarter
Mahindra and Mahindra (M&M) is expecting reduction in production and sales volume at its automotive division and in its wholly-owned subsidiary in the last quarter of the current fiscal due to global supply shortage of micro-processors.
M&M said it is engaging closely with its auto components supplier Bosch and assessing likely production loss.
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"The operations of the company in the automotive sector will be affected by the global supply shortage of micro-processors (semiconductors) used in electronic control unit (ECUs) which is supplied by Bosch," Mahindra said in a regulatory filing.
Mahindra said this is estimated to result in reduction in production/ sales volume of the company (automotive division) and Mahindra Vehicle Manufacturers (MVML), a wholly-owned subsidiary of the company, in the last quarter of financial year 2020-2021.
"The company is engaging closely with Bosch and assessing likely production loss for the last quarter of FY 2020-2021 on account of this supply disruption as also steps to be taken to minimise the impact of the same," M&M said.
However, estimation of exact likely reduction in production/sales volume of the company (automotive division) and MVML for the last quarter is not ascertainable at this stage, the company added.
M&M, however, said there will be no material impact of the above event on production/sales volume of the company (automotive division) and MVML in the month of December 2020.
The company said its tractor operations and three-wheeler production is unaffected with the above disruption.