Sucheta Dalal :M&M suffers 5% production loss due to supply constraints
Sucheta Dalal

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M&M suffers 5% production loss due to supply constraints  

January 8, 2010

India's largest utility vehicle maker Mahindra & Mahindra Ltd said on Friday that it has suffered a production loss of around 5% due to supply constraints of components, reports PTI.


"Our company has lost production of around 5% since October due to supply constraints. The supply shortage has come from various kinds of components," Mahindra & Mahindra president for automotive sector, Pawan Goenka, told reporters at the 10th Auto Expo.


He said that the industry expects supply constraints to continue for a few more months. "This supply shortage is because of capacity constraints among auto-component makers. Nobody had expected this kind of big recovery in auto sales and this has led to this problem as suppliers had not invested to deal with this kind of volume increase," he said.


Mr Goenka said that he expects a recovery from the constraint by April this year once suppliers are able to ramp up capacity. — Yogesh Sapkale

-- Sucheta Dalal