Mahindra & Mahindra Ltd has decided to postpone its launch of XUV500 sports utility vehicle in new overseas markets, since demand for the product was overwhelming in domestic market, according to company’s senior executive.
The company has also decided to ramp up its production capacity at its Chakan plant, where the vehicle is manufactured, to bring down the waiting period from 17 weeks at present.
Speaking on the sidelines of the Asia Pacific Automotive Engineering Conference-16, a three-day conference orgnaised by SaeIndia in Chennai, Pawan Goenka, president (automotive & farm equipment sectors), Mahindra and Mahindra, said the company secured a record 5,000 bookings in just seven days of launch of XUV 500.
"We will have to delay the launch in other markets, both in the country and overseas, by not more than three months. We are overwhelmed by the response we have got in just seven days of the launch," he said.
The company also decided to postpone the vehicle's launch in export markets. “Earlier we planned in six months, this will be delayed now for few more months,” he said.
The company, which launched the product in South Africa, was planning to launch in Australia, Chile, Sri Lanka, Nepal and parts of Western Europe.
On the production side, the company initially planned to manufacture 2,000 vehicles a month and has now decided to ramp up. “Final number will be decided in the next few weeks,” he said.
On the company's investment plans, he said that so far it had invested Rs 650 crore in the product, excluding Rs 200 crore towards engine and transmission. The company also invested Rs 2,500 crore in its Chakan plant to manufacture four models, including XUV500.