Mahindra & Mahindra running short of Components

Indian Auto Industry at present is at its full swing growth with exponential demand and companies launching new models in different segments. The industry has been able to come back to growth path after two long years. But at the same time another effect is triggered in industry and that is the shortage of parts.

The Nashik, Maharashtra based plant of Mahindra and Mahindra is running on its full capacity leaving behind the bad memories of 2008 slowdown. The thought of plant shut down and break in production is now ironic for auto manufacturers. The plants are running on their full capacity by employing maximum inputs and workers. Mahindra & Mahindra registered a striking growth of 70% this year which has broken all records of the company. The most famous products have been Mahindra Xylo and Mahindra Scorpio which are attracting large number of customers in individual markets.

Though the company is running good these days but it also has a topic of concern as the Nashik plant of Mahindra & Mahindra is running out of components. This scarcity is hindering the plant from manufacturing for existing orders and then the inventory. According to a senior official of the company, they are in a dilemma as to weather the company should utilise the available parts in manufacturing existing models or should they go for new vehicles which they want to launch.

The officials also commented that the company is trying its best to manage import of these components from foreign markets like China. With this we see that though the Indian Auto Market is going through the best time ever, companies are finding it difficult to manage sufficient inputs for their manufacturing process.

The condition is bad not just for Mahindra & Mahindra but the same situation is also faced by big players like Maruti Suzuki, Ford, Volkswagen and Hyundai. As per the reports, the companies are not able to take the full advantage of this growing market because of this big hindrance in components shortage.

The scarcity of components is not the only problem that the auto manufacturers are facing but also the increasing price of inputs is a topic of concern for them.

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