Mahindra & Mahindra (M&M) reported healthy sales figures in November. While auto sales went up 45 percent year-on-year, tractor sales saw a 10 percent gain. Moreover, the tractor demand should continue to remain strong on account of the brisk sowing of rabi crops.
However, speaking to CNBC-TV18, Rajesh Jejurikar, ED-Auto & Farm Sectors at M&M said semiconductor availability still remains a challenge.
“We had a slight dip from October to November and that is because semiconductors in some of our vehicles still continue to be a little short. We did have a shortage of a specific product, which impacted us in the month of November. We may have some of that in the month of December as well,” he said.
Talking about supply-side challenges Jejurikar said there could be specific issues related to semiconductors or the availability of a specific part at any time through the end of 2022 or even going to 2023.
“China is easing a little bit but a zero-COVID tolerance policy does lead to lockdowns... So we would expect to see disruptions along the way in 2023, but nothing like what we saw in 2021,” he said.
Price hike
Mahindra is planning a small price hike to offset the input costs.
"We expect the cost range in the range of maybe Rs 10,000 to 16,000 -17,000 depending on the models. We don't think that for the kind of price points we play in this is going to be a very significant impact or will have any impact on the demand,” said Jejurikar.
In January M&M is launching XUV400, it will be the first real electric SUV offering and the bookings will start towards the end of January. Jejurikar said that test rides for the same will start this month itself.
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First Published: Dec 5, 2022 11:31 AM IST
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