Mumbai, Sep 2 (IANS): Automobile manufacturer Mahindra and Mahindra will observe seven 'No Production Days' in September due to the supply shortage of semiconductors.

The company said that its automotive division continues to face shortage of semiconductor supply, "which has got further accentuated due to the Covid-induced lockdowns in some parts of the world".

The company estimates reduction in production volumes by 20-25 per cent as a result of the 'No Production Days'.

"The revenue and profitability will be impacted in line with the fall in production volumes. The company is taking various cost optimisation measures to limit the impact," the automobile manufacturer said in a regulatory filing on Thursday.

The company also said that there will be no material impact on XUV7OO production ramp-up and launch plans.

"The date of commencement of bookings will be announced soon," it said.

The company's tractor operations, exports, trucks and buses business and three-wheeler production will be unaffected, it said.m