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M&M expects supply disruptions in automotive sector due to shortage of micro-processors

10 Dec 2020 Evaluate

Mahindra and Mahindra (M&M) is expecting supply disruptions in the automotive sector due to shortage of micro-processors used in Electronic Control Unit (ECUs) which is supplied by Bosch. This is estimated to result in reduction in production / sales volume of the Company (Automotive Division) and Mahindra Vehicle Manufacturers, a wholly owned subsidiary of the Company (MVML) in the last quarter of FY 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 minimize the impact of the same. 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.

There will be no material impact of the above event on production / sales volume of the Company (Automotive Division) and MVML for the month of December 2020. The Company’s tractor operations and 3-wheeler production is unaffected with the above disruption.

M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.

Mahindra & Mahindra Share Price

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