Published : 25 July 2022
Read Time : 5 min
Author: Mahesh Yadav
Mahindra recently announced that they have received 1.5 lakh bookings for the XUV700 SUV. This is a remarkable achievement considering the price point at which the XUV700 sells and the established rivals like the Tata Safari, Harrier and MG Hector twins in this price range.
Until the end of June 2022, Mahindra have dispatched a total of 41,846 units of the XUV700. The current pace of XUV700 production is averaging between 4,000 and 6,000 units a month. So, we can safely assume that even if Mahindra consistently deliver at the upper limit of their capacity, new customers will have a wait time of about 18 months. If Mahindra maintain the average production pace of about 4,500 units for the XUV700, then we can say that the waiting periods go up to 2 years.
Also Read: June 2022 Mahindra Car Sales Analysis - YoY, MoM Change, 6-Month Trend
On one hand, a huge demand is a good thing and on the other hand, not being able to meet that demand is another logistical nightmare for Mahindra. While supply-demand mismatch is a problem, it’s still better to have supply constraint rather than a demand shortage. If Mahindra have a massive demand that their customers are willing to wait for almost a year and a half, then it’s a sign of XUV700’s success even if it doesn’t have a 5-figure monthly production number.
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Recently Mahindra announced the prices of the Scorpio N, which is also creating quite a buzz. Since the Scorpio N also operates in the same price band as the XUV700, we can expect it to steal some customers from the XUV. On the demand side, this means, the Scorpio N may steal some resources from the XUV700 somewhat constraining its production.