Mahindra XUV500 SUV production capacity to be increased to 3000 units per month: 5900+ bookings in 2 days
Mahindra & Mahindra had set the production capacity for the XUV500 SUV at 2000 units a month at the time of its launch in September 2011. M&M had to suspend bookings in as they received bookings for 8000+ units in just 10 days of business, which equates to vehicles manufactured over a 4 month production period.
M&M has again resumed bookings for the XUV500 SUV, this time across 9 cities rather than the initial approach of launching only in 5 cities across India. While bookings will remain open from 25th January to 3rd February 2012, Mahindra has already received 5900+ bookings in the first two days.
Keeping in mind strong demand, production for the sports utility vehicle will be increased in the next 2—3 months. Arun Malhotra, Mahindra & Mahindra Senior Vice President (Sales Customer Care) Automotive Division had this to say. “The response to the XUV500 has been overwhelming and the demand is very good. The management will make every effort to ramp up production. Last month, we produced about 2,500 units and in the very near future we are looking to take it up to 3,000 units.” He further added, “By ‘very near future’, we mean about two to three months, but we have to keep in mind that ramping up production involves increasing supplies from our vendors too and hence it has to be a gradual process.”
Deloitte Touche Tohmatsu India Pvt., has been selected to validate the draw allotment. The start of this year saw Mahindra hike XUV500 prices across its 3 variants by Rs 30,000, Rs 50,000 and Rs 55,000 (ex showroom, Delhi), respectively. At the time of launch in September 2011, the SUV was launched at an introductory price range of Rs 10.8 and 11.95 lakh (ex showroom, Delhi). With the company limited bookings at 7,200 units in this second coming, M&M will opt for a fair draw system to allot vehicles in two and half months. “The booking amount will be refunded for those who are not successful in the draw,” said Arun Malhotra. The announcement regarding selected buyers will be made by 15th February 2012.