The upcoming XUV700 is one of the much-awaited products from Mahindra's stable, which will make its global debut on August 15, 2021. The SUV is likely to go on sale in the country during the festive period. But deliveries of the XUV700 could be affected due to the semiconductor crisis. In fact, the chip shortage has begun impacting the carmaker's production, leading to a significant rise in waiting periods. During the FY2022 Q1 result announcement, the top official said the company is considering scaling down its production due to the global shortage of semiconductor chips.
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The chip shortage has begun impacting Mahindra's production, leading to a significant rise in waiting periods.
The top executive also stated that delivery announcements for the SUV will be made once the company is confident about the semiconductor situation. Rajesh Jejurikar, Executive Director, M&M Ltd, said, "We will make delivery announcements about the XUV700 when we have more confidence regarding the semiconductor situation. Right now, the situation is very dynamic."
He further said, "We are evaluating it, but have not reached a conclusion about it yet. We are looking at what we have in our inventory and the balancing act that needs to be done."
The resurgence of the COVID-19 pandemic in Asian nations like Malaysia has impacted the semiconductor supply as it is one of the chip sourcing hubs. Anish Shah, CEO, M&M Ltd, said, "Malaysia is going through a serious wave of the pandemic and since a lot of semiconductors come from the Asian side, it is affecting supplies."
Mahindra sold 85,858 vehicles during the first quarter of FY2022
Also Read: Mahindra Q1 FY2022 Revenue Stands At Rs 11,763 Crores Up 110%
Mahindra and Mahindra recently announced its FY2022 Q1 financial result wherein the company recorded a revenue of Rs. 11,763 crores which is a hike of 110 per cent. The homegrown automaker sold 85,858 vehicles during the first quarter of FY2022 as compared to 29,619 vehicles during the same period in FY 2021, registering a growth of 190 per cent.
Maruti Suzuki India had recently announced that production at Suzuki Motor Gujarat (SMG) in Gujarat has been affected this month due to the semiconductor shortage. Stating the situation dynamic and uncertain, the company will not carry out production on three Saturdays - August 7, 14, and 21. And some of the production lines may see a temporary reduction from two-shift to single shift operations.
