Capacity expansion will help Mahindra to clear existing bookings, reduce waiting period and make way for its born-electric range
With growing demand for its SUVs like Bolero, Scorpio N, Thar, SUV300 and XUV700, Mahindra’s plants are running at full capacity. Even then, there’s significant waiting period. It creates a situation where some customers may choose to cancel their booking and go for a rival product.
To clear existing bookings and ensure faster deliveries, Mahindra is working to increase SUV production capacity. As of Q4, FY22, monthly SUV production capacity is at 29k. By Q4, FY23, SUV production capacity will be increased to 39k units per month. By Q4, FY24, production capacity will be 49k units per month. That’s an increment of 10k in production capacity every 12 months.
Mahindra SUVs production capacity
Mahindra has formulated a detailed plan on targeted production capacity of its popular SUVs. Quantum of increase in production capacity of these SUVs will be based on market demand and existing backlog of deliveries to be made. Exports will also determine the level of increase in production capacity. For SUVs that do not witness any major fluctuations in demand, production capacity will be maintained at the same level over the next 2-3 years.
In near future, Thar is expected to witness increased demand with launch of 5-seat variant. To ensure faster deliveries, Thar production capacity will be increased from 4k units per month (Q4, FY22) to 6k units per month in Q4, FY23. This will be maintained through Q4, FY24.
Thar 5-door SUV is expected to debut in January 2023. It will have spacious interiors and pack in new features to position it as a more likeable family SUV. It will rival the likes of Maruti Jimny 5-door and Force Gurkha 5-door.
Another product that will boost sales in near future is XUV400. It will primarily rival Tata Nexon EV. Production capacity of XUV300 and XUV400 will be at 5k per month in Q4, FY22. It will be increased to 7.5k per month by Q4, FY23. By Q3, FY24, production will be further increased to 9.5k units per month.
In case of XUV700, production capacity of 6k units per month will be maintained through Q4, FY23. It will be later increased to 10k units per month by Q3, FY24. Scorpio-N has a similar capacity expansion plan in place.
Bolero, Scorpio Classic production capacity
For SUVs like Bolero and Scorpio Classic that register same level of sales every month, production capacity will be maintained at existing levels over the next 2-3 years. For Bolero, production capacity has been fixed at 9.5k units per month till Q4, FY24. For Scorpio Classic, production capacity will be maintained at 5.5k units per month.
For its electric XUVs and born-electric range, Mahindra will be setting up an entirely new plant in Pune. It will involve a massive Rs 10k crore investment, spread over a period of 7-8 years.
