Chip shortages extend wait time for Mahindra XUV700 even as Scorpio-N launched; eyes 20% eSUV sales by 2025-27
Robust consumer demand teamed with an ongoing shortage of chips has seen wait times for Mahindra & Mahindra Ltd.’s XUV700 sports utility vehicle balloon to as long as 22 months just as the carmaker unveils the latest model in its big-automobile lineup.
Outstanding customer pre-orders for the seven-seater XUV700, which the Indian automaker launched in August, are running to around 70,000, Executive Director Rajesh Jejurikar said in an interview last week. While the chip shortage has eased from a peak late last year, Mahindra is still experiencing some supply chain pain points, he said.
The Mumbai-based $15.8 billion cars-to-factory equipment conglomerate took the wraps off its Scorpio-N late Monday, an automobile it bills as the “Big Daddy of SUVs.” Mahindra is hoping consumers in India will continue their embrace of larger, gas guzzling vehicles even as Prime Minister Narendra Modi commits to making the South Asian nation a net-zero carbon emitting one by 2070.
Mahindra doesn’t have a strong electric vehicle line up -- it currently sells one passenger EV, the e-Verito, though it does have a much bigger presence in the electric three-wheeler market. But Jejurikar said range anxiety and lack of charging infrastructure mean the company doesn’t see a tipping point for EVs until between 2025 to 2027.
By that stage, electric SUV sales are expected to comprise about 20% to 25% of Mahindra’s sales, he said.
Until then, a major focus for Mahindra, which also last year unveiled a new look logo, will be defending its market share in the large-format SUV segment from Tata Motors Ltd. and Hyundai Motor Co.
Data from automotive business intelligence provider JATO Dynamics show Mahindra had a leading revenue market share of
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