Despite the chip crisis getting mitigated, Mahindra & Mahindra (M&M) continues to sustain a strong demand momentum for its bestselling Sports Utility Vehicles (SUVs). A senior company official said that it is garnering an average of close to 48,000 units booking every month over the last few months.
Speaking to media post Q4 FY-24 earnings call, Rajesh Jejurikar, ED and CEO of Auto and Farm business at Mahindra & Mahindra said that the company is sitting on an order book of 2.20 lakh units at the beginning of 1st of May and the cancellation rate continues to remain in single digits at 10 percent.
On a monthly basis, while the homegrown automaker continues to garner 48,000 units, its new billings are at 42,000 units and cancellation rates are 10 percent.
While giving a presentation, Jejurikar revealed that M&M currently has over 220,000 bookings for its SUVs, which includes XUV 3XO (50,000 open bookings), Thar (59,000 open bookings), XUV7OO (16,000 open bookings), Bolero (including Neo) (10,000 open bookings) and Scorpio-N (86,000 open bookings).
His presentation revealed that the company is able to sell 7,000 units of Thar, 8,000 units of XUV 7OO, 9,500 units of Bolero (including Neo), 17,000 units of Scorpio (including Classic).
“Our focus is clearly on the SUV segment, where we see a huge opportunity for growth. The SUV category last year was about 25 lakh (units) per annum," said Jejurikar.
The official clarified that the open bookings include the 50,000 bookings of the XUV 3XO, which the company garnered during the the first hour.
“Everything else is as of 1st of May, except XUV 3OO and have we have taken the one hour booking right now. We will not update that on an hourly basis. If you are looking at what is the number today, you are not getting it. This is the number we have put out in the first hour. We will update appropriately,” stated Jejurikar.
However, he maintained that the company's key winning factor is to get the vehicles out. "While we have produced 10,000 units of XUV 3XO we have the capacity of 9,000 units (per month) of this model," said Jejurikar.
Jejurikar also revealed that Mahindra has nearly trebled its total SUV volumes from 179,400 units per annum to 459,000 units per annum in five years. As a result, its SUV revenue marketshare was up from 17.6 percent during FY 20 to 20.4 percent during FY 24.
Meanwhile, the company is ramping up its annual capacity of its SUVs from 6 lakh units or 49,000 units per month currently to over 8.64 lakh units or 72,000 units per month.
“FY23 we have exited 39,000 per month capacity and expect to end next year at 64,000 units per month. And at the end of FY 26, we expect to end with 72,000 units per month," said Jejurikar.
He went on to add, “For SUVs, we will be expanding by 5,000 units per month additionally and that covers up for the 5-door Thar (to be launched this year) and 10,000 units of Born Electric vehicle capacity that will be kicking in by exit of FY 25. It will include another 8,000 units of Born Electric (vehicle's) capacity."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
