Auto major Mahindra and Mahindra said on Thursday it expects a 20 per cent to 25 per cent drop in September vehicle production at its automotive division due to semiconductor shortages.
Car makers across the world have been hit by semiconductor shortages and warned of further pain due to stiff competition from the sprawling consumer electronics industry for chip deliveries.
Mahindra will observe 'no production days' of about seven days in its automotive division plants this month, the company said in an exchange filing.
Earlier this week, Maruti Suzuki, India's top car maker, said it expected production at its plants in the states of Haryana and Gujarat to be hit in September due to a shortage of semiconductors.
Mahindra said its revenue and profitability would be impacted in line with the fall in production volumes.
Mahindra shares were down nearly 1 per cent after the production update.
However, the carmaker said its tractor operations and exports, trucks and buses business, and 3-wheeler production were unaffected by the disruption.