M&M expects drop in production, sales volume at auto divisio

M&M expects drop in production, sales volume at auto division & MVML 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.
"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.

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