Utility vehicle maker Mahindra and Mahindra on Thursday said it would have “no production days” of around seven days across all its plants in September because of a severe semiconductor shortage. The closure will reduce output at its automotive facilities by 25 per cent this month, the company said.

In a regulatory filing, the company said, “The automotive division continues to face supply shortages of semiconductors which has got accentuated due to Covid lockdowns in some parts of the world. The revenue and profitability will be impacted in line with the fall in production volumes. The company is taking various cost optimising measures to limit the impact.”

M&M’s automotive division has manufacturing units at Chakan, Nashik, Kandivali, Zaheerabad (Telengana) and Haridwar.

The company, however, said there will be no impact on the production ramp-up and launch plans of its new SUV XUV700. “The date of commencement of bookings will be announced soon,” it added.

Operations of the company’s tractors, trucks, buses and three-wheeler businesses and exports will not be affected by the shortage.

Earlier on Tuesday, the country’s largest car maker Maruti Suzuki India (MSI) had said it expected its total vehicle production in September across its plants in Haryana and parent Suzuki’s unit in Gujarat to be just 40 per cent of the normal output because of the semiconductor shortage.

“Owing to a supply constraint of electronic components, the company is expecting an adverse impact on vehicle production,” it said.

Maruti is expecting the global semiconductor crunch to last for about a year and is adjusting production to match the chip supply, Shashank Srivastava, executive director for marketing and sales, said.

Hyundai is in talks with its parent company Hyundai Motor Company to manage the chip shortage.

“As of now our production is not impacted at the plants,” said a company spokesperson who added that the ongoing crisis had been exacerbated with the closure of semiconductor plants in China and Malaysia due to Covid-19.

Tata Motors is trying to manage supplies by procuring chip sets from the open market, managing model/trim mix and using alternative chips, said a company spokesman.

“Certain disruptions in other parts of the world, like the recent lockdown in Malaysia, continues to keep the supply environment uncertain. We are taking all appropriate measures to mitigate the impact on production of vehicles through better planning and closer coordination with our suppliers,” said the Tata Motors spokesperson.