Semiconductor shortage will impact till June-end: M&M

Talking about the shortage of semiconductors, he said, "In February, though our passenger vehicle SUV segment grew by about 40 percent, we were still impacted by the availability of electronic control units (ECUs) in the same period. We ended up getting about 40 percent lower than our actual receipts of ECU in January. So in February, we saw a deterioration; clearly, this was a dampener.”

He added, “We are hoping March would come back at least to January levels. Unfortunately, we are worst affected than others in this case because there is one specific supplier in Malta who makes this semiconductor chips who is worse affected than the industry average.”

Speaking about diversifying the supply chain, Jejurikar said, “It is not easy to diversify the supply chain in these kinds of products at a short notice. We do believe that our current supplier will come out of this in the next few months. We think the issue will remain at least for the next quarter, i.e., the end of June, at the levels that we are seeing right now January-March levels, we hope not February because February was really bad from an availability point of view and then things should start easing out for us post-June.”