India’s Mahindra and Mahindra flags persisting chip shortages as profit rises

Indian automaker Mahindra and Mahindra Ltd on Friday warned that chip shortages were still limiting its efforts to ramp up production of sports utility vehicles (SUVs) after reporting a 22% rise in quarterly profit.

The maker of the Scorpio, Thar and XUV range of SUVs benefited from robust demand for larger and pricier vehicles that made up more than half of India’s record passenger vehicle sales in fiscal 2023.

Chip shortages prevented the company from meeting its monthly SUV production target of 39,000 units, Rajesh Jejurikar, chief executive at Mahindra’s auto and farm sector, said in a press conference.