The results of Mahindra’s beefed-up production line will be reflected by Q4 2024 and is aimed at reducing waiting period of current SUVs
Indian auto manufacturer, Mahindra, is currently riding a massive wave of success. That said, the word success is confined to attracting buyers and translating them into bookings. When it comes to delivery, Mahindra is lagging to cope with the immense popularity that it is generating.
When XUV700 was launched in August 2021, it received 50,000 reservations in just 2 days of commencing bookings. If you think that is impressive, you will be blown away by Scorpio N’s feat. Scorpio N managed to bag 1 lakh bookings in just 30 minutes. Yeah! Scorpio Classic and Thar are in huge demand as well.
Mahindra Set To Ramp Up Production
Customer woes are very high right now owing to long waiting periods. Due to supply chain issues and semiconductor shortages, Mahindra has had a massive setback. Mahindra has recently announced to ramp up its production line which is set to reduce waiting period.
Currently, Mahindra’s monthly production capacity is up to 29,000 units. To cope with demand and to reduce waiting period for its customers, Mahindra is set to increase its monthly production capacity to 49,000 units by Q4 2024. The company is revamping its production line with a capital investment of Rs. 7,900 crores in the next 3 years.
Apart from its current in-demand SUVs like Scorpio N, XUV700 and Thar, Mahindra is prepping itself to accommodate future products in its product line as well. These future products include 5-Door Thar which is currently in testing phase and XUV400 Electric SUV, which is set to launch in early 2024. Mahindra is creating a firm ground for its EV portfolio by incorporating a monthly production capacity of 15,000 to 17,000. By doing this, Mahindra is set to keep around 30% of its total production capacity for EVs.
Speaking of production capacity, Mahindra is equipped to produce 5,000 units of XUV300, 6,000 units of Scorpio N, 4,000 units of Thar and 6,000 units of XUV700. By Q4 2024, Mahindra aims to produce 9,500 units of XUV300, 10,000 units of Scorpio N, 6,000 units of Thar and 10,000 units of its flagship XUV700 – every month. This move should considerably reduce the waiting period for customers.
On November 1st, 2022, Mahindra announced that they have 2.60 lakh open bookings for their SUV range. These are yet to be delivered to customers. This number includes 20,000 units of the Thar, 13,000 units of the XUV300, 13,000 units of the Bolero range, 1.30 lakh bookings for the new Scorpio (including N and Classic) and 80,000 bookings for its flagship XUV700.
Apart from these, the company has Bolero Neo Plus, XUV400 electric and Thar 5-door version on its platter that might launch in early 2024. It is yet to be seen how much impact this move makes on waiting period.