Mahindra & Mahindra which is riding high on the success of its recent launches is sitting on a healthy order book of more than 2,60,000 SUVs is looking at ramping up capacity.
Mahindra plans increasing production capacity by 120,000 units per year till Q4 FY2024, which translates to an addition of 10,000 units per month for its existing SUVs. For instance, by March 2023, the company will add a capacity to produce 6,000 Scorpio-N per month, which will be gradually ramped up to 10,000 units a month by March 2024; the XUV700 capacity will be ramped up from the existing 6,000 units per month to 10,000 units by December 2023. The XUV300 and soon-to-be-launched XUV400 SUV will see production capacity increase from 5,000 units a month to 9,500 units by December 2023 respectively.
The SUV maker says the expansion is part of its plans to cater to the robust demand for its new launches, it will further help meet existing bookings and also reduce waiting periods for new products. In addition, it will also add to export potential.
With this the company’s total production capacity will increase to 5,88,000 SUVs from 3,48,000 SUVs per annum.
The Scorpion-N (1,30,000 units) and XUV700 (80,000 units) make up for the vast majority of orders. But the long waiting period is a cause of concern for both the OEM as well as its customers. As part of its efforts to be future-ready, Mahindra has announced an investment of Rs 7,900 crore over a period of three years towards expanding manufacturing capacity.
