Auto manufacturers stare at supply outages amid shortage of semi-conductors

Mahindra and Mahindra is one of the firms that Bosch counts as a key customer. In a late evening notification to the stock exchange

A shortage of semi-conductors (micro processors) a critical cmponent that is used in the manufacturing of electronic control unit (ECUs), is set to disrupt the production at auto firms in India. This comes at a time when demand in world’s fifth largest auto market is in the initial stage of recovery after the Coronavirus (Covid-19) pandemic induced lockdown earlier this year.

Following a rapid recovery in demand for discretionary items including electronics and automobiles, demand for semi-conductors has outstripped supplies, leading to a shortage. In India, Bosch and Continental are the largest suppliers of ECUs to automakers. An ECU is an