Mahindra & Mahindra recently announced that the company is facing a supply shortage of semiconductors, which remains a global issue. In light of the shortage, the automaker will be making production cuts at its plants, which will also impact production volumes, revenue and profitability. Despite the challenging environment, the automaker has affirmed that the chip shortage does not delay the all-new Mahindra XUV700 launch that will take place as per schedule. Bookings will begin as per schedule as well, the company reiterated. However, Mahindra is yet to disclose when do the bookings begin for the new XUV700.
Also Read: India's Mahindra And Mahindra Flags Production Hit Due To Chip Shortage
In a regulatory filing, the automaker said, "There will be no material impact of the above event on the XUV700 production ramp-up and launch plans. The date of commencement of bookings will be announced soon."
Mahindra is yet to announce prices of the higher variants of the XUV700 that will see more consumption of semiconductor chips with all that tech on offer
In the same filing, Mahindra said that the semiconductor shortage has impacted production for September and the automaker will be observing 'no production days' for around seven days. This should lower production volumes by 20-25 per cent, which will also affect the revenue and profitability that will be impacted on similar lines. The company added that it "is taking various cost optimisation measures to limit the impact."
Mahindra also said that its tractor operations, exports, trucks and buses business and three-wheeler production remain unaffected by the above disruption.
Also Read: Mahindra XUV700 First Drive Review: Petrol And Diesel Driven
The Mahindra XUV700 is rich in tech, especially in the higher variants and even gets Level 1 ADAS
The Mahindra XUV700 is the brand's new flagship and the company took the market by storm by announcing an aggressive starting price of Rs. 11.99 lakh (ex-showroom). Prices for the higher variants with all the bells and whistles are yet to be announced. The higher-spec trims also come with more of the tech-laden goodies including Level 1 ADAS, dual screens, and the new AdrenoX user interface that runs the set-up. The SUV will be offered with turbocharged petrol and diesel engine options, both paired with manual and automatic transmission options. There will also be an optional all-wheel-drive variant on the diesel version.
