Meanwhile, global shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs) fitted in different components / aggregates for vehicles also has been weighing on production and continues to pose challenges to the smooth production schedules, it said.
Earlier this month, the maker of XUV5OO and Scorpio models announced a temporary halt of operations at its plants. On Wednesday, Royal Enfield said the company’s manufacturing operations across its four facilities will remain suspended between May 13 to May 16 and it will undertake maintenance activity at its manufacturing plants during this time.
Several other automakers, including Maruti Suzuki India, Hero MotoCorp, Toyota, and Honda Motorcycle & Scooter India have announced partial closure of up to 15 days and some have even extended it due to pandemic-induced disruptions.
“In view of this, the Company is carefully reviewing the demand and supply situation and re-calibrating its operations accordingly while protecting the interest of its customers, dealers and suppliers," said M&M.
The endeavour is to ensure optimal level of inventory at plants and dealerships in order to be prepared for a rebound in demand once the situation returns to normalcy, it added. Mahindra will report its earnings for the March quarter on May 25.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.