Home-grown automaker, Mahindra & Mahindra is expecting its sales volume to fall in the range of 15-20% in the first quarter of the ongoing fiscal year.
The revenue and profitability will be impacted in line with the fall in volumes mentioned above. However, the company is taking various cost optimisation measures to limit the adverse impact, the company said in a regulatory filing to BSE.
As the rampant spread of the second wave of COVID-19 and lockdowns enforced in various states and parts of the country, coupled with disruption in the supply of oxygen for industrial use, demand and supply for vehicles and tractors is expected to be impacted temporarily.
In addition, on the supply side, the global shortage of micro-processors (semiconductors) used in Electronic Control Unit (ECUs) fitted in different components for vehicles continues to pose challenges to the smooth production schedules.
The company said it is carefully reviewing the demand & supply situation and re-calibrating its operations accordingly while protecting the interest of its customers, dealers and suppliers.
The endeavour is to ensure an optimal level of inventory at plants & dealerships in order to be prepared for a rebound in demand once the situation returns to normalcy.
Earlier this month, the company announced that it has advanced the annual maintenance for four days in May, which was originally planned for June.