New Mahindra Thar launch has been postponed by three months and so has the launch of the XUV500, the Indian automaker has revealed.
The utility vehicle major has had to delay new product launches as it struggles to meet demand with the current supply issues created by COVID-19.
Also, Mahindra is currently working on localising components sourced from China to reduce dependence on imports, stating it will take three to six months to do so.
A top executive from the firm who has revealed the above also admitted that demand returned to the market much faster than anticipated.
Mahindra reckons supply constraints will take at least 30-45 days to stabilise, while rural India generates strong demand.
The new Thar launch has been delayed, yet Mahindra still expects demand to be high with vehicle subscription and rural markets driving sales.
Mahindra sells more than 50 percent of its products like the Bolero, Scorpio and Jeeto, to rural India.
The automaker is witnessing footfall at dealerships at 40 percent and enquiries at about 75 percent to pre-COVID times. Also, bookings have risen, with a big chunk of it coming from digital platforms.
The XUV500 maker dispatched 8075 passenger vehicles in June, 2020, compared to 18,826 vehicles in June 2019.
It expects the festive season to be strong with the new Mahindra Thar launch and XUV500 launch and demand for larger vehicles to rise.
The Thar is expected to hit the showrooms by FY20 Q3, which means around September-October. The XUV500 is likely to go on sale by Q4.
New Mahindra Thar Launch
- Mahindra Thar and XUV500 launch delayed by three months
- Supply issues due to COVID-19 the reason
- Mahindra expects a strong festive season this year
Source – ETAuto.com