Mahindra to hike XUV500 capacity to 3,000 units in 2-3 months

Mahindra & Mahindra is looking to increase production of its latest sports utility vehicle XUV500 to about 3,000 units per month in the next 2-3 months because of strong demand.

The company, which reopened bookings of the vehicle on January 25, has already received 5,900 orders within two 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," Mahindra & Mahindra Senior Vice-President (Sales Customer Care) Automotive Division Arun Malhotra told PTI.

When asked specifically, he said: "By 'very near future', we mean about two to three months, but we have to keep in mind that ramping up production involves increasing supplies from our vendors too and hence it has to be a gradual process".

Commenting on the number of bookings after it was reopened on January 25 for a limited period of 10 days, he said it has touched 5,900 units in two days.

M&M had suspended bookings last year in October after launching the vehicle on September 29, as four months production of over 8,000 units was sold out within just 10 days.

Malhotra said if the current bookings exceed 7,200 units by February, the company will conduct a draw and allot as many customers the vehicle within two and half months.

"The booking amount will be refunded for those who are not successful in the draw," he said, adding results of the draw will be announced by February 15, 2012.

The company has hiked prices of XUV500 in the beginning of this month with its three variants becoming dearer by Rs 30,000, Rs 50,000 and Rs 55,000 (ex-showroom, Delhi), respectively.

The SUV was launched at introductory prices ranging between Rs 10.8 and 11.95 lakh (ex-showroom, Delhi).

Tags: Arun Malhotra, M&M, Mahindra & Mahindra, production, SUV, XUV500