This SUV model from Mahindra has a wait of almost 2 years amid strong demand. | Tech US News

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Strong consumer demand combined with persistent chip shortages has seen the wait time for Mahindra & Mahindra Ltd’s XUV700 sports utility vehicle balloon to 22 months just as the automaker unveils the latest model in its large automobile lineup. Is.

Executive director Rajesh Jejurikar said in an interview last week that outstanding customer pre-orders for the seven-seater XUV700, which the Indian carmaker launched in August, are approaching 70,000. While chip shortages have eased from the peak late last year, Mahindra still faces some supply chain pain points, he said.

The Mumbai-based $15.8 billion car-to-factory equipment group late Monday took the wraps off its Scorpio-N, an automobile it bills as the “big daddy of SUVs.” Mahindra is hoping that consumers in India will buy larger, gas-guzzling vehicles even as Prime Minister Narendra Modi has pledged to make the South Asian nation a net-zero carbon emitter by 2070.

Mahindra doesn’t have a strong lineup of electric vehicles — it currently sells a passenger EV, the e-Verito, though it has a strong presence in the electric three-wheeler market. But Jejurikar said range anxiety and a lack of charging infrastructure mean the company doesn’t see a tipping point for EVs between 2025 and 2027.

By this stage, electric SUV sales are expected to comprise about 20% to 25% of Mahindra’s sales, he said.

Until then, a major focus for Mahindra, which unveiled a new-look logo last year, was Tata Motors Ltd. and Hyundai Motor Co. will defend its market share in the large format SUV segment.

Data from automotive business intelligence provider JATO Dynamics shows Mahindra’s revenue market share was 17.8% in the fourth quarter of fiscal 2022, followed by Tata, Hyundai and Hyundai affiliate Kia.

Mahindra is not the only carmaker to suffer long wait times due to the chip.

Maruti Suzuki India Ltd, the automaker that sells every other car on the country’s roads and positions itself in the small car segment, doesn’t see the semiconductor shortage going away even in 2023.

But chairman RC Bhargava said “with more engineering input on how to beat the problem, production this year will definitely be better than last year.”

“Right now we have 325,000 cars on our waiting list. That’s about two months of sales. We think we’ll have the problem more under control by the end of this year.”

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