$M&M

Mahindra & Mahindra (M&M) came under pressure in early trade on Thursday following reports of potential production disruptions caused by labour shortages at key supplier facilities. The stock slipped as much as 1.67 percent in morning trade, hitting an intraday low on the NSE around 9:18 am. It later recovered some of the losses and was trading at Rs 2,923.20, down 0.99 percent, at 9:36 am. Market sentiment was impacted by a report in The Economic Times, which indicated that M&M could witness a reduction of up to 15 percent in SUV production during June due to labour-related challenges faced by some of its critical vendors. According to sources cited in the report, a major supplier is experiencing a 20–25 percent shortfall in supplies owing to a shortage of contract workers. The disruption is believed to be affecting the production of popular models, including the XUV 7XO and Thar. Mahindra currently has an installed manufacturing capacity of approximately 57,000 petrol and diesel vehicles per month. Industry experts note that labour shortages are no longer confined to specific regions. "Labour shortage is no longer a Maharashtra-specific issue; it has become a pan-India manufacturing challenge," said Rajesh Soni, CEO of Neolite ZKW Lightings.