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Mahindra will stop the production of cars for seven days in September 2021 due to the ongoing semiconductor shortage in the automotive industry. Mahindra has announced that its factories will be shut down to cope with the acute shortage of semiconductor chips. The semiconductor issue definitely seems to be worsening.
When COVID-19 reached a Pandemic status in 2020, several countries across the world went into lockdown. Factories were shut and production of goods was stopped. Only those factories producing essential commodities were allowed to function. Little did the world know that semiconductor chips would be one of those essential commodities a few months later.
Once the lockdowns were lifted, industries started producing goods and the automotive industry saw a spurt in sales numbers. The demand for new vehicles is really high across the world and it turns out that semiconductor manufacturers are just not able to keep up. Several automotive brands have had to slow down production to cope with the shortage.
Mahindra has now decided to stop the production of its cars for a week. This move will allow the brand to build up a significant enough stock of these chips over the period of seven days, and this will help the brand get back to full-fledged production of cars. However, this also proves to be expensive for the brand as it will affect revenue and profitability by 20-25 percent.
However, Mahindra has confirmed that the chip shortage will not affect the production of its recently-launched flagship XUV700 and its tractors as well as three-wheelers. The XUV700 is an extremely important model for Mahindra as it is its most advanced SUV yet.
The Mahindra XUV700 is one of the best-looking SUVs Mahindra has produced. It builds on the design of the erstwhile XUV500, but is bigger and more muscular. It rides on 18-inch dual-tone alloy wheels, gets LED lighting all around, and has segment-first flush door handles.
It is inside the car that the engineers and designers have done an outstanding job. It gets dual 10.25-inch screens for the infotainment and instrumentation and both are placed neatly in a glass panel, giving it the premium feels usually found on vehicles from higher segments.
It comes with features like Android Auto & Apple CarPlay, Amazon Alexa, Voice Assistant, Dual-Zone Climate Control, Ambient lighting, Air Purifier, etc.
The all-new XUV700 is offered with both petrol and diesel engine options. The petrol unit is a 2.0-litre turbocharged engine with a maximum power output of 197.2bhp (200PS) and a peak torque output of 380Nm. The 2.2-litre mHawk diesel unit produces 184.4bhp (187PS), and 420NM for the manual gearbox, and 450Nm for the automatic.
Thoughts On Mahindra Stopping Production For Seven Days Due To Semiconductor Shortage
Mahindra is only the latest in a long line of manufacturers to be affected by the semiconductor shortage. But it does seem like the brand has been affected pretty badly as it has decided to stop production. It remains to be seen how the company recovers from this.