Mahindra Has Order Backlog Of 2.2 Lakh Units

Mahindra's recent performance and strategic outlook highlight significant progress and ambitious plans for future growth. The company reported an order backlog of 2.20 lakh units, a mix of 50,000 units for the newly introduced XUV 3XO and 1,70,000 units for its existing SUV lineup as of early May 2024. This backlog, although substantial, reflects an improvement from February 2024 when open bookings stood at 2.26 lakh units.

Key to this reduction has been Mahindra's enhanced production capacity, which has increased to nearly 49,000 units per month. This scaling up of operations has resulted in shorter waiting times across several models. For instance, the backlog for the XUV700 decreased significantly from 35,000 units in February to 16,000 units by May 1, aided by an increase in its monthly bookings from 7,000 to 8,000 units.

The Thar and Scorpio models dominate Mahindra's current order book, comprising approximately 65 per cent of total bookings. The Scorpio range had 86,000 pending orders and averaged 17,000 monthly bookings, while the Thar had 59,000 pending orders and received 7,000 bookings monthly. The Bolero family maintained a steady flow with 10,000 open bookings and 9,500 new bookings per month.

Mahindra's strategic response to this high demand includes commencing deliveries of the XUV 3XO on May 26, 2024, with an initial production rate of 9,000 units per month, which can be quickly increased to 10,500 units if needed. Furthermore, the company is set on expanding its overall production capacity to meet future demand. By the end of FY25, Mahindra aims to elevate its monthly production capacity to 64,000 units by boosting SUV and EV outputs.

This expansion aligns with the anticipated launch of its new Born Electric SUVs in late FY2025, and the company plans to further increase EV production by 8,000 units per month by the end of FY2026, bringing the total production capacity to 72,000 units.