Homegrown sports car maker Mahindra & Mahindra on Friday announced that it will increase production capacity for its products such as XUV3OO, XUV4OO, XUV7OO and Scorpio-N to around 6 lakh units per annum by Q4FY24. The automaker said the move is expected to drastically reduce wait times for its SUV lineup.
Mahindra, in its financial statement for 2Q23, said this capacity expansion plan is to “accommodate continued strong demand for new launches, clear existing bookings, reduce waiting time for the new launches, export against and prepare for electric vehicles (electric cars).”
M&M CEO Rajesh Jejurikar said in a virtual press conference, “The company is in the process of ramping up its sports car production capacity over the next 12-15 months to reduce long waiting times for some models like the XUV700 and Scorpio-N.”
Mahindra also revealed that the production capacity of its SUVs like XUV300 and XUV400 will increase to 9,500 units, Thar will increase to 6,000 units and Scorpio N will go up to 10,000 units every month. Currently, the automaker is struggling to meet the huge backlog of orders that had reached up to 2.6 lakh units by October 2022.
Mahindra’s total production capacity is expected to increase from 29,000 units in Q2FY23 to 49,000 units by Q4FY24. The company also revealed that it had invested around Rs 7,900 crore between FY22 and FY24. Moreover, for its EV portfolio, the company will also make up to 17,000 units per month.
Regarding EV production capacity, Jejurikar said, “By 2027, we expect 20-30 percent of our SUV volume to be electric. Some of the capacity will overlap with the internal combustion engine (ICE). So in a way, we are preparing for somewhere between 12,000 to 17,000 units per month by 2027 for the electric portfolio.
In terms of sales, Mahindra saw a growth of 60.45 percent to 32,298 units from last October. In September 2022, the company sold 32,298 units, 12,168 units less than in the previous month. This is also the car manufacturer’s second best monthly sales this fiscal year.
“In SUVs, we continue to be the market share leader in terms of revenue. Festive sales have been strong this year in the automotive and agricultural sectors,” Jejurikar added. On the company’s plans for the transition to the next level of emission norms that will begin in April next year, Jejurikar said “M&M would start the process in January-February next year and complete the project in March.
Mahindra’s current passenger car lineup in the country is the XUV700, Scorpio N, Scorpio Classic, XUV300, Bolero and Bolero Neo. The company, in FY23, had managed to sell 1,99,278 UVs so far and registered a growth of 78 percent over the same period last fiscal.
Mahindra auto segment’s revenue for the September quarter rose to Rs 15,231 crore from Rs 8,245 crore in the same period a year ago. Similarly, revenue from the farm equipment segment increased to Rs 7,506 crore from Rs 6,723 crore.