Chip shortage could delay launch of Mahindra Scorpio, XUV500

Mahindra expects the shortage of semiconductors to continue into the second quarter of 2021. Before the company starts production of the Scorpio and XUV500, it will have to keep a healthy stock of electronic components in hand.

Earlier this year, we had reported that car manufacturers all over the world were cutting production due to a shortage of semiconductor chips. This shortage has hit Mahindra as well and this might result in the company pushing the launch of the new Scorpio and XUV500 to dates later than originally scheduled.

Mahindra expects the shortage of semiconductors to continue into the second quarter of 2021. Before the company starts production of the Scorpio and XUV500, it will have to keep a healthy stock of electronic components in hand.

In modern cars, almost all circuits are based on microprocessors and semiconductors - from the critical engine, gearbox, safety systems such as ABS, airbags to others like Bluetooth, air-conditioner, electronic seats and powered tailgates among others. The shortage of semiconductor chips means that these components cannot be manufactured and vehicles without these components cannot be sold. This in turn, has led to manufacturing of vehicles being stopped.

The shortage for semiconductor was the result of the strong demand for new cars and consumer electronics that arose due to the outbreak of the Covid-19 pandemic.

Source: Autocar India