[mytbhp_turbo]

Originally Posted by Guna

Wonder why Mahindra couldn't have bought Ford's manufacturing facilities. May be , it's the chips which are the bottleneck and not the capacity?

Frankly, no simple answer for this, I know lots of opinion in forum about this but I do feel it's lot complex than it looks, few pointers.

1. Can not simply commit to higher volume - GTO gave good example in Thar thread, https://www.team-bhp.com/forum/offic...ml#post4966853 (Mahindra Thar : Official Review)

2. Just in Time (J-I-T) Process - One can even write thesis on this but do check how car manufacturer work this out.

3. Raw material and vendor prices - Historically raw material prices were pretty range bound and so was supply done by vendors, its absolute chaos these days, which meant another dynamic factor in supply chain and delivery.

4. Semiconductor - I did not include this in 3rd, from power steering to high end ADAS everything uses it, they are still bottleneck.

[Moto_Bear]

Originally Posted by mytbhp_turbo

Frankly, no simple answer for this, I know lots of opinion in forum about this but I do feel it's lot complex than it looks, few pointers.

1. Can not simply commit to higher volume - GTO gave good example in Thar thread, https://www.team-bhp.com/forum/offic...ml#post4966853 (Mahindra Thar : Official Review)

While I agree with GTO's Post, his example is applicable in niche vehicles such as Thar. It would be applicable in 2 door Thar's case, where demand could decline slowly after few years given it doesn't appeal to the masses as a family vehicle.

However, in case of XUV7OO and the upcoming 2022 Scorpio, this example doesn't hold well, as they are mass market family vehicles. And given that XUV7OO is their flagship, not committing to higher volumes is not a prudent business decision. The difference is Thar being a niche vehicle and XUV7OO being a mass market one. It would be a wiser decision to upgrade production cpabilities not only to churn out vehicles in-demand such as XUV7OO but as a proactive measure for its future vehicles such as Scorpio and 5 Door Thar, given that Mahindra has been killing it with their new design language.

4. Semiconductor - I did not include this in 3rd, from power steering to high end ADAS everything uses it, they are still bottleneck.

Originally Posted by Guna

Wonder why Mahindra couldn't have bought Ford's manufacturing facilities. May be, it's the chips which are the bottleneck and not the capacity?

Originally Posted by ram87pune

Hello bhpians.

Here's latest round of info on the XUV700.

1. As already mentioned, a fresh batch of chips will arrive sometime this month but it will only be enough to stretch production till March 2022. After March it's expected that there will be severe chip shortage and due to this deliveries may get delayed further still. Mahindra may be forced to use some of the chips from Thar for the XUV700 which will impact Thar's waiting periods.

I'm still not able to comprehend how Mahindra seems to suffer so much when compared to others. As per Ram87pune's sneak-peeks, Mahindra is barely able to continue production till March, semiconductors being the bottleneck. Even the top honchos aren't confident in Mahindra's supply chain right now and as per them, the situation is "highly dynamic". Mahindra acted in the way of Internet Explorer, when the demand of vehicles dipped during the lockdown periods. Mahindra honchos focused on the short term scene while it was right-in-your-face crisis with Container shortages, EverGiven fiasco and the sharp rise in demands of Electronics due to WFH. While, almost every manufacturer suffered for a while and are now recovering more or less, Mahindra still has grey clouds over its supply chains.

Originally Posted by BhayanaV

This is a strategy started long back by Maruti and perhaps adopted by many others. And it works well in India, longer the waiting period, more the perceived value.

While it may work for companies such as MSIL or Hyundai which are constantly churning out more than 15k vehicle per model in case of MSIL (Baleno, Swift etc.) and more than 10k for Hyundai(Creta, Venue etc.), longer waiting periods simply doesn't equate to more perceived value for M&M.

It's simply because Mahindra hasn't been in the numbers game and it was one of the factors why Mahindra chose to focus solely on SUVs. Mahindra could have learned from their Thar fiasco and acted proactively for their flagship, but the similarities between Thar and XUV's atrocious delivery timelines are unmissable.

Mahindra hasn't produced more than 5.5k vehicles of any model in November and as such, it is more of a question on the production capability of Mahindra. This is the reason why a lot of fellows on various social media groups are questioning Mahindra's ability to deliver rather than waiting for their aspirational vehicle.

Edit: On another note, did anyone come across any review video of AX7L MT? Two reviews are labelled as such on YouTube, but they are AX7 variants with some options of Luxury pack put on them.

[mytbhp_turbo]

Originally Posted by Moto_Bear

While I agree with GTO's Post, his example is applicable in niche vehicles such as Thar. It would be applicable in 2 door Thar's case, where demand could decline slowly after few years given it doesn't appeal to the masses as a family vehicle.

However, in case of XUV7OO and the upcoming 2022 Scorpio, this example doesn't hold well, as they are mass market family vehicles. And given that XUV7OO is their flagship, not committing to higher volumes is not a prudent business decision. The difference is Thar being a niche vehicle and XUV7OO being a mass market one. It would be a wiser decision to upgrade productional capabilities not only to churn out vehicles in-demand such as XUV7OO but as a proactive measure for its future vehicles such as Scorpio and 5 Door Thar, given that Mahindra has been killing it with their new design language.

*SNIP*

I will have to respectfully disagree here, just check sales of all 7 seater vehicle in India. even with massive response Hector took 21 months to achieve 50K delivery milestone.
Look at this way, huge 7 seater with 13-16 KMPL (ARAI) milage, during covid times with sky rocketed fuel prices, assuming it will be mass production vehicle would have been strategy blunder. All these vehicle settle down in 2K per month range.
We have seen this madness and then flattening sale curve year on year, XUV 500, Swift diesel, Duster, Honda City diesel, Verna Diesel, Ecosport.. list goes on and on, no manufacturer ever took assembly line decision based on initial estimated figure.

[mytbhp_turbo]

This will make everyone in queue to feel better, one customer posted this, delivery date as per mail was April 2022 but he got it in Dec 2021 -

https://www.youtube.com/watch?v=6xP3ONWpD58&t=56s

[vinya_jag]

My BIL has booked the Top trim Diesel, and the message says "We are happy to inform you that your delivery is scheduled in July 2023"

- "Happy to inform"?

And so, the jokes are running around

"We don't even know if we will be around tille then"

[84.monsoon]

Originally Posted by Guna

Wonder why Mahindra couldn't have bought Ford's manufacturing facilities. May be , it's the chips which are the bottleneck and not the capacity?

I very much doubt Ford would want to enter any more contracts with Mahindra! The 2019 deal was wrung out with very favorable terms for M&M - it was NPV negative for Ford, but they still took it, with the singular desire to stay in the Indian market for the longer term. That did not pan out as expected. By then, the pandemic struck Also by then, M&M had the manufacturing and design prowess to not need Ford any more and they backed out citing the easy reason - the pandemic! Ford was clear it was an opportunistic decision by M&M, but they were out of all routes forward in India by then, and they had to wind up India operations.Checkmate, Ford!

They would have wanted to sell the plant to anyone but M&M !

[ScorpWarp]

I had booked AX7 L Diesel AWD on second day early morning. Never followed up with the dealer, did not even take a test ride yet. I would most probably cancel since I am now thinking of New Tucson or Kodiaq or Jeep Meridian. However the tracker now shows order processed and delivery time between 7 th Oct to 8 th Nov 2022. That serves me well in case the Tucson or Kodiaq or Meridian plan fails

[mytbhp_turbo]

Originally Posted by ScorpWarp

I had booked AX7 L Diesel AWD on second day early morning. Never followed up with the dealer, did not even take a test ride yet. I would most probably cancel since I am now thinking of New Tucson or Kodiaq or Jeep Meridian. However the tracker now shows order processed and delivery time between 7 th Oct to 8 th Nov 2022. That serves me well in case the Tucson or Kodiaq or Meridian plan fails

Might be little off-topic for this thread, since you are in Pune might be useful info for you, I accompanied my friend (he is interested in Alcazar) to Kothari Hyundai Aundh, I casually checked about Tucson ( 4th generation 2022), SA said they are accepting booking for New Tucson.

[ScorpWarp]

Originally Posted by mytbhp_turbo

I casually checked about Tucson ( 4th generation 2022), SA said they are accepting booking for New Tucson.

Thanks for the info. I am certainly interested in Tucson but since the upgrade for me is purely a 'want' rather than 'need' I am hoping to test drive all three before deciding on XUV 700.

[Guna]

Originally Posted by mytbhp_turbo

This will make everyone in queue to feel better, one customer posted this, delivery date as per mail was April 2022 but he got it in Dec 2021 -

Even my dealer says that they are already getting the cars which are scheduled to be delivered in March. This may be true with specific variants (lower trims?).

[nairanupg]

I am sorry but this is precisely the reason i did not vote for the XUV 700 as the car of the year.
I am in the market for a new SUV and i am on the verge of putting 25 lakhs odd on the safari 'cause atleast i get hold of the vehicle in a month. This from a highy satisfied XUV 500 owner with almost 1.5 lakh kms with Mahindra, primarily 'cause of lack of options with the XUV having set the bar high.

Its absurd and bordering on incompetent planning when we have an organisation like Mahindra making amazing products over the last few years but failing to ramp up production. Chip shortages yes, however 2 years is a cardinal sin

By the way, its been a few months of the launch and i have seen not 1 XUV 700 on the road in Patna where i spend a lot of time. And i personally know atleast 7 people who have booked the vehicle.
For the Life of me i dnt understand how we voted for a vehicle without enough specimens on the road.
I am sorry now i am rambling out of frustration for a beautiful product that i cant get my hands on

[Dushyanth]

Wow!
So this means that you book a 2021 XUV7OO now and still get a 2021 XUV7OO when Mahindra are already accepting orders for the updated 2022/2023 XUV7OO which will then probably be on sale?

[Raghu M]

All said and done, let's look at it from a customer's perspective. I am a customer and ready to splurge 30L on the high end trim but cannot because I don't have a product to be assigned. That to me is utterly ridiculous. That's the beauty of business, you need to predict your demand and have supply ready. You know (am sure M&M was confident of the 7OO) you have a killer product on hand but if you cannot capitalize on it, then the product simply holds no value. Chip shortage, production line issues, global container problem, Corona - all these apply to every manufacturer/business. You need to steal when everyone else is asleep, that's how you become global leader in your field.

M&M did not anticipate the demand theory stands no chance as an excuse. If I have to wait for 19 months to lay my hands on my car, I would simply look elsewhere. Many people just tick off some cars because of the insane waiting periods. A customer gone is a car not sold. M&M, you are doing good of late, get aggressive. You have an awesome fan base now, you will definitely do well.

[Enthusiast81]

Yesterday I visited the showroom while coming back from work. I heard from the SA that XUV700 bookings had crossed the 1 lakh mark long back and the cancellations have gone down in the last few weeks. There were a good number of cancellations before Mahindra announced the tentative delivery dates,he said. He also said that there were hardly any takers for the Smart variant and customers are willing to wait for the luxury trim even if the delivery is delayed.

[ant_vas]

An interesting tit-bit on the XUV700 deliveries. quiklyz which is Mahindra finance car leasing arm has XUV700 available on lease. Delivery timelines are quoted at 12-14 weeks!

I spoke to one of the executives and asked this specific question that directly purchase has wait times of over a year, how is that you are able to deliver the car in 3 months time. As per him quiklyz being part of Mahindra Finance, they have pre-booked XUV700 expecting demand and hence they are able to deliver in 3 months. Now will they stick to the timelines is to be seen.

On the car leasing front, the top trim XUV700 AX7 Diesel Automatic comes ~50K/month. It includes white board vehicle registered in your name, RTO charges, 0 Depreciation B2B insurance, all service and maintenance and RSA.

Does it make sense to go for a leased route especially if one is self employed and can get tax benefits?