M&M expects chip crunch going forward, pandemic to hurt first quarter

Indian automaker Mahindra and Mahindra warned on Friday that a global chip shortage, rising commodity prices and pandemic-related lockdowns in its home market posed a threat to its business in the first quarter of fiscal 2022.

Apart from the chip shortage triggered by factors including pandemic-driven supply-chain disruptions, the Indian auto industry is under pressure from a severe second wave of Covid-19 infections that have led to a fresh round of lockdowns.

However, Mahindra said it expected demand to rebound in June and July as states came out of lockdowns, after reporting a profit after tax of 484.4 million rupees ($6.69 million) for the fourth quarter ended March.