Semiconductor Crisis Main Reason For Long Waiting Periods: Anand Mahindra

Mahindra and Mahindra launched two big ticket SUVs in the past 2 years and they’ve got the rightful attention they deserve. Both the Mahindra XUV700 and the Scorpio-N have been the centre of attention of a host of car buyers in the country, but they also have been at the centre of the storm when it comes to the global chip shortage. In fact, Anand Mahindra, Chairman, Mahindra Group, in his message at the Mahindra AGM, said that one of the main reasons for the long waiting periods on its cars was the low availability of semiconductors. He said, “In M&M, one of the main reasons for the long waiting periods for delivery of vehicles is that the availability of semiconductors had slowed down to a trickle. Those lamenting the demise of a global supply network are ignoring the fact that the disruption is in the China-dominated global supply network rather than the true global supply chain.”

Also Read: Strong Demand For Mahindra SUVs Continues; Waiting Period To Go Up

Currently the XUV700 has a waiting period of 20-24 months depending on the variant, the Thar too has a waiting period of 7 to 8 months. Finally, the Scorpio-N too is likely to have a long waiting as well. While the company has not yet given a timeline, it has given a monthly production number. Rajesh Jejurikar, Executive Director, Automotive and Farm Sectors, Mahindra and Mahindra, elaborated during the press conference for the financial results saying, “The Scorpio-N deliveries will begin from September, and we are planning to delivery 20,000 vehicles this year. We are aiming for a 6000 units per month production number and of course, the ramp up will push those numbers.”

While there is a ramp up plan in place, there are several roadblocks, like the availability of semi-conductors. Clearly, the demand outweighs the supply, and the company hopes that the semiconductor issue gets better by the end of this year.