Sports utility vehicle (SUV) heavyweight Mahindra & Mahindra (M&M) will double its SUV production capacity to bring down the waiting period on its offerings and expedite the product delivery schedules to its customers.
As of August, the Mumbai-based company had sold 29,516 utility vehicles, ranking second in the segment, while pushing Maruti Suzuki to the third spot. It was also the best-ever month for the company.
While precise data on the planned augmentation of capacity was not shared, M&M managing director Anish Shah said a roadmap on production plans will be shared shortly. M&M will hold an event in November, wherein it will share its production enhancement plans to meet demand, which has consistently outpaced its supply.
Speaking at the investor conference hosted by Motilal Oswal Financial Services in Mumbai, Shah said M&M is focused on meeting strong demand for its SUV portfolio by ramping up capacity 2x.
The company says it has open bookings for more than 240,000 units for five SUV models, including more than 100,000 units for the new Scorpio. It claims that it has the market leader position, with 17% share in Q1FY23 in the SUV revenue segment.
On the electric vehicle front, the company hopes to regain the leadership position, driven by the recently showcased InGlo platform, which will deliver five new electric SUVs under ‘Mahindra Born electric vision’ with critical components coming from VW.
M&M recently showcased the XUV400, its first all-electric SUV, which will go on sale in January. The company expects a 20-30% EV penetration by FY27 in its SUV volumes, which is about 200,000 at the upper end.
“The penetration is expected to be driven by a wide product portfolio, and improving charging infra/time. It doesn’t expect EVs profit pool to be materially different from that of ICE, as it enjoys lower GST, PLI benefits, etc,” said the Motilal Oswal report.
M&M has lined up ₹10,000 crore in the EV segment which will see the debut of five electric SUV, which were showcased in August. British International Investment will invest a total of ₹1925 crore in two tranches to own 2.75% to 4.76% in a new EV company that will house electric SUVs, related brands and IP. The valuation of this new company is ₹70,070 crore.