Mahindra has a waiting period of 22 months for the newly launched ScorpioN. Bookings opened on July 30 and the company received 1 lakh bookings in 30 minutes.
Ruling out the possibility that the wait period is because of a chip shortage, MD and CEO, M&M Limited Anish Shah said: “The chip shortage has largely abated and the current wait period is largely driven by demand.”
“We are producing close to our capacities for our key models. We do understand that such long wait times are not what the customers want and we are doing everything to bring it down. However, ramping up production needs a leadtime. Increased production will take a few months,” said Rajesh Jejurikar, executive director.
Maruti sets 2 million production goal
Maruti Suzuki India will increase its production and aims to produce 20 lakh units (2 million) in the ongoing fiscal with improving availability of semiconductors, according to company chairman R.C. Bhargava.
In his address to shareholders in the company’s annual report for 2021-22, Bhargava said the upcoming midsized SUV Grand Vitara would play a key role in the challenge to touch 20 lakh units.
In 2021-22, total sales of Maruti Suzuki India Ltd (MSIL) increased 13.4 per cent to 16.52 lakh units. It had lost out on sales in the first quarter of the fiscal because of the pandemic and the shortage of semiconductors.
“The number of unmet bookings with the company at the end of the year rose to about 2.7 lakhs,” he said, adding MSIL’s market share declined to 43.4 per cent from nearly 50 per cent as it lost some opportunity in the domestic market.
As per Society of Indian Automobile Manufacturers (SIAM) data, domestic passenger vehicle sales stood at 30,69,499 units in 2021-22 compared with 27,11,457 units in 2020-21.
On the outlook for the current year, he said, “The vehicle production would increase as the situation regarding the availability of semiconductors has improved. Your company has also made further improvisations to enhance production. I am exhorting our team to reach 2 million units, though doing that remains a challenge.” Bhargava further said the launch of the Grand Vitara, which will be manufactured by Toyota at its Karnataka factory, “is one of the reasons why we are expecting to increase production and challenge 2 million units”.
