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Mahindra is on a success tide with its latest offering in the SUV segment, the XUV500. Since its launch, the demand for the XUV500 has been so high that Mahindra has not been able to deliver vehicles to meet the demand. Now, the company is planning to increase the production capacity of the XUV500 to about 3000 units per month in a period of 2 to 3 months keeping in mind that strong demand that the vehicle is currently holding. Mahindra had re-opened its bookings for the XUV500 on January 25th which got an overwhelming response of 5900 orders in just 2 days.

“The response to the XUV500 has been overwhelming and the demand is very good. The management will make every effort to ramp up production. Last month, we produced about 2,500 units and in the very near future we are looking to take it up to 3,000 units,” Arun Malhotra, Senior VP (Sales Customer Care), Mahindra, Automotive Division  said.

Mahindra launched the XUV500 in the Indian market in the month of September last year. The company received an outstanding 8000 bookings (equal to 4 months of production capacity) in just 10 days. So huge was the response that the company had to temporarily close bookings till it could meet the demand. The company had launched the XUV500 at an introductory price of Rs. 10.8 lakhs to Rs. 11.95 lakhs (ex-showroom, Delhi). However, after the overwhelming response, the company increased prices by Rs. 30,000, Rs. 50,000 and Rs. 55,000 (ex-showroom, Delhi).

With the Indian consumer shifting its preferences to SUVs, Mahindra is definitely keen on taking advantage of this demand wave by increasing the production capacity of the XUV500. Mr. Malhotra added in his statement that the company had to gradually ramp up the production since an increase in turnover capacity also reflected increased supplies from their vendors which had to be kept in mind. The company had declared that if the bookings of the XUV500 cross 7200 units by February, the company will be conducting a “Draw and Allot” system to select its customers.

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