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M&M to ramp up XUV capacity to 3,000 units

18 Jan 2012 Evaluate

Buoyed by the influx of bookings for its newly-launched global sports utility vehicle (SUV) – XUV500 – Mahindra & Mahindra (M&M) is looking at scaling up the production capacity of the all-wheel drive vehicle at its Chakan plant near Pune to 3,000 units per month during the next fiscal. Since its launch on September 29 last year, the XUV500 received over 8,000 bookings in just 10 days, post which M&M suspended new bookings in October due to inability to meet the demand. The vehicle was available only in five cities of Mumbai, Delhi, Bangalore, Chennai, and Pune then.

M&M will open the Phase-II of bookings for XUV500, the fourth SUV from its arsenal, with the other three being Scorpio, Bolero and Xylo, for a limited period of 10 days starting January 25 in 19 cities including Hyderabad, Kolkata, Ahmedabad, Chandigarh, Ludhiana, Jalandhar, Patiala, Kochi, Thiruvanthapuram, Kozhikode, Trissur, Coimbatore, Nagpur and Nashik. If the bookings exceed 7,200 units, then it will go for a scientific and transparent draw process, which will be validated by Deloitte Touche Tohmatsu India and the Rs 80,000 amount to be paid with the XUV draw application form will be refundable. M&M, which launched XUV500 at introductory prices ranging between Rs 108 lakh and Rs 11.95 lakh, had hiked prices in the beginning of this month with its two variants becoming dearer by Rs 35,000-Rs 50,000. The company had started exporting XUV in small volumes to South Africa and once it is able to ramp up the production and feed the domestic demand, the company will go into more countries.

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