Mahindra Adjusts Thar Production Strategy Due to Model Competition

In a strategic move to expand its vehicle portfolio, Mahindra & Mahindra has announced the introduction of the Thar Roxx 5-door model, which is expected to complement its existing 3-door Thar SUV. The company's leadership acknowledges the potential for some degree of market cannibalisation between the two models. However, the company has developed a capacity plan to accommodate this and is optimistic about the overall growth of the Thar lineup. Mahindra is readying the launch of the 5-door Thar Roxx on August 15.

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Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), Mahindra & Mahindra Ltd., said, "There will be some cannibalisation certainly between Thar Roxx and the current 3-door model. That is factored into the way we have created capacity." This indicates that Mahindra is prepared for the new model to partially divert sales from the 3-door version but expects the overall portfolio to benefit from this addition.

Although the exact mathematical models Mahindra uses to predict cannibalisation were not disclosed, various analytical methods can be employed to estimate this impact. These models typically consider factors such as historical sales data, market trends, customer preferences, and competitive dynamics.

Mahindra has proactively adjusted its production capacity to manage the anticipated demand for the Thar Roxx 5-door. The company is increasing its production by an additional 3,000 to 4,000 units per month specifically for the new model. This significant ramp-up in production capacity underscores Mahindra's confidence in the Thar Roxx 5-door's market potential.

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Jejurikar added, "We believe that the portfolio will grow together. We are creating an additional 3,000 or 4,000 units a month for the Thar 5-door over and above the total capacity." This suggests that while the 5-door variant may initially draw some buyers away from the 3-door model, the overall sales of the Thar series are expected to increase.

As with any new product launch, the actual market response will be crucial in determining the long-term success of the Thar Roxx 5-door. Mahindra plans to monitor sales closely and make necessary adjustments based on real-world data. Jejurikar added, "We will have to adjust and respond after we launch and see the whole mix play out together."