M&M to diversify semicon supply chain for new EV lineup

Mumbai-based auto major Mahindra and Mahindra (M&M) has de-risked its semiconductor supply chain for its new electric vehicles (EVs) BE 6 and XEV 9e, which were unveiled in November last year and deliveries expected to commence in March, a senior company executive said on Wednesday.

- SOHINI DAS

The move comes in the aftermath of the pandemic that exposed vulnerabilities in the global supply chains, including India's semiconductor sector.

In an interaction with Business Standard, Rajesh Jejurikar, M&M executive director and CEO for auto and farm sectors said: "We have taken the learnings we had during Covid-19 to plan this time. For every semiconductor chip we have a back-up ready and validated."

"The vendors don't make the chips; they work with chip makers. Earlier a Tier-1 vendor would have only one chip maker or one chip supplier with whom they would work. If one Tier-2 chip maker runs into a supply chain issue, we have an alternate chip maker. Every Tier-1 chip maker of ours has disclosed their source of chip and what are their alternate supplier plans. From the semiconductor chip side, we are in a much better position," he explained.

The first three quarters of 2021 saw global auto production dip by 26 per cent due to an acute chip shortage, while in India automakers were forced to cut output by up to 40 per cent.