Chip shortage: Mahindra reports production loss of 50k units

The global chip supply is likely to improve slightly in the second half of 2022.

The auto sector has been reeling under a major semiconductor shortage since last year. Mahindra has also been adversely affected by this, resulting in delays.

According to Veejay Nakra, CEO of the Automotive Division, Mahindra’s production loss between July and December 2021 stood at 50,000 cars. The chip shortage affected manufacturing operations throughout Q3 when the company lost around 20,000 units.

In Q2, Covid-19 infections were on the rise in Malaysia, which affected chip production. During this period, Mahindra lost around 30,000 vehicles.

Nakra added that the company has developed a new integrated chip (IC) source and has created a reserve stock of critical ICs. The company is also looking at buying ICs from the open market.

The global supply of chips is likely to improve slightly in the second half of 2022. However, the company expects challenging days ahead.

Source: ET Auto

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