Indias

India’s Mahindra sees Sept car output down by a quarter on chip shortage

An employee works inside the Mahindra & Mahindra manufacturing plant in Chakan, India, September 30, 2016. REUTERS/Danish Siddiqui/File Photo

BENGALURU, Sept 2 (Reuters) – Indian automaker Mahindra and Mahindra Ltd (MAHM.NS) said on Thursday it expects a 20%-25% drop in September vehicle production due to semiconductor shortages, following supply chain disruptions due to the pandemic.

Globally carmakers have been hit by chip shortages and have warned of further pain due to stiff competition from the consumer electronics industry for semiconductor deliveries.

Mahindra said its revenue and profit will be impacted in line with the fall in production volumes, while its tractor, truck, bus and 3-wheeler production was unaffected.

The company will have about seven “no production days” at its automotive division plants this month, the company said in a filing.

Earlier this week, Maruti Suzuki India Ltd (MRTI.NS), the country’s top carmaker, said it expected production at its

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