SUV major rides sustained and surging wave of demand for its SUVs; cumulative sales cross 400,000 units in first 11 months of FY2024, a fiscal which will see M&M dispatch a record 450,000-plus units across India.
01 Mar 2024 | 11894 Views | By Ajit Dalvi
With SUVs accounting for over 55% of total passenger vehicle sales in India in the current fiscal year, Mahindra & Mahindra is making the most of the sustained and surging wave of consumer demand for this vehicle type. In February 2024, the Mumbai-based auto major sold a total of 42,401 ...
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With SUVs accounting for over 55% of total passenger vehicle sales in India in the current fiscal year, Mahindra & Mahindra is making the most of the sustained and surging wave of consumer demand for this vehicle type. In February 2024, the Mumbai-based auto major sold a total of 42,401 units, which makes for robust 40% year-on-year growth (February 2023: 30,358 units).
In an extremely competitive market for utility vehicles, Mahindra & Mahindra, which has eight SUVs (Bolero, Bolero Neo, Scorpio, Scorpio N, Scorpio Classic, Thar, XUV300, XUV400 and XUV700) and a sole sedan (eVerito), has maintained high double-digit YoY growth throughout this fiscal.
M&M to clock sales of over 450,000 units in FY2024
While it has already scaled a new high for a fiscal in the first 11 months of FY2024 at 419,246 units, up 30% (see wholesales data table below) – 42,401 units more than the record FY2023’s 376,845 units – M&M will easily drive past a record 450,000-plus units in FY2024 when March 2024 numbers are factored in.
The 11-month wholesales data table above reveals the strong and sustained growth trajectory the company has maintained through all of FY2024. While it has averaged monthly sales of 38,113 units, M&M’s best monthly dispatches were in festive October – 43,708 units. January 2024’s 43,068 units were the second-best monthly numbers, followed by February (42,401 units).
Ramped-up production to cater to massive demand
Mahindra & Mahindra, which has reported a strong Q3 FY2024 performance, continues to have a ‘problem’ of plenty. Last month, the company revealed that, as of February 1, 2024, it had around 226,000 open bookings for its SUVs comprising the flagship XUV700, Scorpio N and Scorpio Classic, Thar, Bolero and Bolero Neo, XUV300 and the all-electric XUV400. This number is reflective of the continued strong level of demand for the company’s SUVs.
The two Scorpios account for the maximum number of bookings – 101,000 units or 45% of total bookings – and are currently averaging 16,000 bookings per month. They are followed by the Thar (71,000 bookings), XUV700 (35,000 bookings), the two Boleros (10,000). The XUV300 and XUV400 together account for 8,800 bookings.
To cater to this huge demand for most of its SUVs, M&M has ramped up production substantially at its factories and has implemented a strategic plan to increase output to up to 49,000 units per month in the current financial year or 600,000 units per annum.