According to Mahindra & Mahindra’s most recent earnings report (April-June 2021), the company has received nearly 59,000 bookings for four products — the Thar, XUV300, Scorpio, and Bolero. A total of approximately 90,000 bookings were made for all five Bolero models with around 30,000 bookings for the commercial Bolero Pickup. Nevertheless, due to the global shortage of semiconductors, considerable waiting periods have been experienced due to the impact on production.
Let us look at the booking details of these Mahindra’s popular cars.
Mahindra Thar Bookings Between April to June 2021
The demand for the new Thar, which was launched on October 2, 2020 has spiked up and it currently has around 10 month waiting period. M&M considers this a successful product. Over 39,500 bookings have already been confirmed for the Thar, which accounts for around 44 per cent of the 90,000 bookings received for all five UVs. The prices of the Thar have increased by 2-7 per cent, depending on the variant, with an increase of about Rs 32,000 – Rs 92,000.
Mahindra XUV300 Bookings Between April to June 2021
More than 10,000 bookings for the Mahindra XUV300 have been received between April to June this year. The AMT trim of this SUV was introduced in the petrol lineup by M&M in February 2021, which was previously offered only with the diesel trims. The W8, W6 and W8 (O) models of the SUV are now offered with a 1.2-litre turbocharged petrol engine.
Mahindra Scropio, Mahindra Bolero and Mahindra Bolero Neo Bookings Between April to June 2021
Currently, more than 6,000 bookings have been made for the Scorpio, with a 45-days waiting time. More than 4,000 bookings have been made for the robust Bolero and the newly launched Bolero Neo, which is priced at Rs 8,48,000 (ex-showroom, India) has received over 5,500 bookings in just three weeks of its launch. In the first quarter of FY2022, Bolero Pickup has been booked over 30,000 times, thanks to the boom in e-commerce and the need to deliver the last miles.
Faced with rising commodity prices and a chip shortage
M&M has raised its vehicle prices as a result of unabated increases in input prices for most vehicle OEMs. It was reported that between March 2020 and June 2021, prices for HR steel (by 77%), copper (by 86%), and platinum (by 47%) and rhodium (by 86%) increased substantially. M&M is increasing prices and managing costs in an effort to stem the rise in commodity prices. The M&M organization produced 1,65,881 vehicles (-14%) in FY2021 as compared to FY2020, sold 1,57215 vehicles (-16%) on the domestic market, and exported 6,732 vehicles. A total of 49,118 units were produced in Q1 of FY2022 (April-June 2021) and 43,202 units were sold in India.
Due to the severe shortage of semiconductors facing the automotive industry, M&M is likely to continue to be impacted in the near future. Mr Rajesh Jejurikar, Executive Director, M&M, reflected on the state of affairs yesterday by saying, “Commodity inflation and semiconductor supply issues remain a concern.”