Scorpio-N, XUV700 SUVs help Mahindra's profit rise by 15 per cent

Strong demand for its SUVs have helped Mahindra and Mahindra clock increased profit in the third quarter of 2022-23. The carmaker has registered rise of 15 per cent in profit in the last three months of 2022. The new generation SUVs from the carmaker, which include flagship models like XUV700, Scorpio-N and Thar, have seen a spike in sales in recent times. However, waiting period for some of these models are the highest among all models in India due to shortage of certain components.

On Friday, Mahindra reported a rise of ₹15.28 billion in its profit in the quarter that ended in December last year. During the same period in 2022, Mahindra had clocked profit of ₹13.35 billion. Rajesh Jejurikar, Executive Director of Auto & Farm Sectors at Mahindra and Mahindra, said that the semiconductor issue continues to impact its production and sales targets. "We do have an issue right now on the availability of airbags and sensors, which is impacting our ability to produce some of the vehicles like Scorpio and XUV 700," Jejurikar said. Over the last one year, Mahindra has also been forced to increase prices of its models due to rise in input costs.

Mahindra SUVs currently have the longest waiting period among all types of models sold in India. The recently-launched RWD version of the Thar SUV has been reported to have waiting period of up to 18 months at some places. While popular models like Scorpio-N has waiting period of up to 65 weeks, the longest waiting period for the XUV700 has come down to around 45 weeks. Overall, Mahindra is yet to deliver more than two lakh units. As of February 1, the carmaker has a pending order backlog of 2.66 lakh SUVs. Mahindra says the waiting period only shows the demand for its cars.

Mahindra and Mahindra is one the top five carmakers in India. Known for its hardcore SUVs, Mahindra has recently rejigged its lineup with fresh models with new design and technology. The carmaker has also launched the XUV400, its first electric SUV, as it aims to take a deep dive in the EV space dominated by its rival Tata Motors.

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