InvestorQ : Does M&M expect the demand for cars to outstrip supply?
Tisha Malhotra made post

Does M&M expect the demand for cars to outstrip supply?

Aashna Tripathi answered.
2 months ago

M&M has reported that the demand for its passenger vehicles could soon be outstripping production. That is largely because people are making a beeline for its latest SUV. For the June quarter, Mahindra & Mahindra reported 74% growth in passenger vehicle (PV) sales at 149,803 units. In addition, they also have a healthy order book and if that is added to the open bookings, the total demand crosses 4.2 lakh units. There appears to be a lot of pent up demand for rugged cars and M&M is really benefitting from this trend.

Recently, M&M had admitted that, while capacity expansion program was on, they had not anticipated that their latest product would get such a response and see such a robust demand pick-up. For instance, the Scorpio-N SUV which was recently announced and bookings were opened, had received 1 lakh orders in just about 30 minutes of the bookings opening. This has already resulted in pre-booked sales of Rs18,000 crore of sales. Due to limited capacity of just 6,000 units currently, the waiting time will be well above a year.