With demand for the Mahindra Thar off-roader being very strong, ever since its launch back in October 2020, the company is set to receive a further ramp-up in its production. Mahindra Thar had received over 15,000 bookings in just 18 days post- launch and in October 2020 the bookings crossed the 20,000 mark that extended the waiting period for the off-roader to eight to ten months.
To help reduce the Thar’s long waiting period, Mahindra on November 4 decided to increase the new Thar’s production by over 50 per cent, from 2,000 units a month to 3,000 by January. Some cities have a waiting period of over 10 months, depending on the colour and variant of the vehicle.
The demand for the car has been high as Mahindra received over 6,000 new bookings in January 2021 alone. Around 45 per cent of the bookings are for the automatic variants, while 25 per cent opted for a petrol powertrain. As of February 1, the total bookings of the new Mahindra Thar have crossed the 38,500 mark.
Mahindra has witnessed a very healthy demand in its UV models that includes Thar, Scorpio, Bolero, and XUV300. Executive director, M&M, Rajesh Jejurikar said in a press conference that the company was prioritizing production as per the demand for Thar that topped the list, followed by XUV300, Bolero, and Scorpio.
As the Indian automobile industry drives out from the slowdown, there continues to be a marked supply-demand mismatch mainly because of inadequate supplies in critical production materials like semiconductors and steel.
Although the company saw an 11 per cent jump during the third quarter of FY2021 (YoY), in the UV business, the production has been unable to match the demand due to a shortage in steel and electronic control units (ECU).
Another area of concern for the company is the rise in raw material prices that has not only affected Mahindra but the entire domestic auto industry.