M&M sees chip crunch easing in 2022, eyes options for EV business

Mahindra and Mahindra Ltd expects semiconductor shortage to persist in 2022 but with lesser severity as compared to the previous year, and is open to raise funding for its electric vehicle (EV) business, the Indian carmaker said on Tuesday.

The automaker also said with better availability of semiconductors, it hopes to maintain volume growth momentum from the third quarter onwards.

While the industry has seen a strong recovery in demand for passenger vehicles in the past two quarters, with chip shortages hurting carmakers globally, companies have scrambled to make up for the production hit.