The global semiconductor chip shortage led Mahindra & Mahindra to cut the features of its XUV700. M&M will offer its buyers the less featured XUV700 than the original launched in India in September 2021.
XUV700 has a strong demand with 70000 bookings and wants to deliver 14000 units by 14th January 2022, but the production is restricted due to chip shortage. However, M&M will offer its buyers lesser priced but with lesser chip dependent features to ensure maximum number of deliveries. Mahindra & Mahindra has already removed the wireless charger from XUV700 and a few months back, they had to dispatch Thar SUVs without the infotainment system. The top variant of XUV700 utilises 170 chips, most of which are the Advanced Driver Assistance Systems.
Due to chip shortage, Mahindra had lost a total production of 32000 units during the September quarter.
Tata Motors, the third-largest carmaker in India by sales volume, has come with a unique solution for a lesser dependence on chips. It is not much affected by the shortage as it has switched over from application-specific chips to general-purpose chips. Features like the TFT screen for the instrument cluster and push button to start/stop is reserved only for the top-end variants. They also removed the physical buttons below the infotainment system. Electric cars use more chips than any IC engine car, so Tata is working with British marques, Jaguar and Land Rover to reduce chip dependence for the future generation of EVs.
Maruti Suzuki and Hyundai had to shut down the production temporarily due to chip shortage.
