The automotive landscape is ever-evolving, and Mahindra & Mahindra, a key player in the Indian market, has recently experienced notable shifts in demand for its SUV lineup. In the third quarter of the fiscal year 2024, the average monthly bookings for some iconic models saw a dip, while others shone brightly, reflecting changing consumer preferences.
Scorpio
The stalwart Scorpio, including its N and Classic variants, faced a slight setback in Q3, with average monthly bookings slipping from 17,000 in Q2 to nearly 16,000. Despite this dip, it remains a formidable contender, boasting an impressive 101,000 open bookings as of February 1, attesting to its enduring popularity.
Thar
The rugged Thar, known for its off-road prowess, recorded a dip in average monthly bookings from around 10,000 in Q2 to 7,000 in Q3. However, it maintains a solid fan base, with 71,000 open bookings, emphasizing its allure among adventure seekers.
XUV700
The XUV700, with its cutting-edge features, experienced a decline in average monthly bookings from almost 9,000 in Q2 to 7,000 in Q3. Despite this, it remains a sought-after model, with 35,000 open bookings as of February 1, showcasing its enduring appeal in the market.
Bolero, XUV300, XUV400
Contrastingly, the Bolero, XUV300, and XUV400 witnessed a surge in demand during the December quarter. The Bolero, including the Neo, saw a notable increase, with average monthly bookings climbing from approximately 9,000 in Q2 to 11,000 in Q3. Similarly, the XUV300 and XUV400 registered a significant jump, going from nearly 6,000 in Q2 to 9,000 in Q3.
Open Bookings
In a regulatory filing, Mahindra disclosed having around 226,000 open bookings as of February 1, shedding light on the market dynamics. The Scorpio leads the pack with 101,000 open bookings, followed by the Thar at 71,000 and the XUV700 at 35,000. The Bolero, XUV300, and XUV400 collectively account for 18,800 open bookings, reinforcing their growing popularity.
Cancellation Rate
While Mahindra witnessed around 50,000 new bookings each month in Q3, with nearly 40,000 billings monthly, it faced challenges with a cancellation rate of almost 10% per month. The company attributed this increase in cancellations to the year-end vehicle identification number (VIN) change. However, the cancellation rate reduced to less than 8% in January 2024, signaling a positive shift.
Decision
In the dynamic landscape of the automotive industry, Mahindra & Mahindra continues to adapt to evolving market trends. While some models faced a temporary dip in demand, the overall picture reflects a resilient market presence, with certain models shining brightly and open bookings indicating sustained consumer interest.
