Consistent High Demand for Mahindra SUVs
Despite the easing of the chip shortage, Mahindra & Mahindra (M&M) continues to experience robust demand for its popular Sports Utility Vehicles (SUVs). A senior company official revealed that the automaker has been consistently receiving around 48,000 bookings each month over the past few months.
Impressive Order Backlog and Low Cancellation Rates
Rajesh Jejurikar, ED and CEO of the Auto and Farm business at Mahindra & Mahindra, disclosed during the Q4 FY-24 earnings call that as of May 1st, the company has an order backlog of 2.20 lakh units, with a cancellation rate holding steady at a low 10 percent. This impressive backlog includes significant numbers for models like the XUV 3X0, Thar, XUV700, Bolero, and Scorpio-N.
Scaling Up Production Capacity
Jejurikar also highlighted that Mahindra has significantly increased its SUV production capacity, growing from 179,400 units per year to 459,000 units annually over the last five years. The company’s market share in SUV revenue has risen from 17.6 percent in FY20 to 20.4 percent in FY24. To meet the growing demand, Mahindra is ramping up its production capacity further, aiming to increase from 6 lakh units annually (49,000 units per month) to 8.64 lakh units per year (72,000 units per month) by the end of FY26.