Mumbai, Oct. 21 -- Mahindra & Mahindra's electric vehicle sales are being constrained by production capacity rather than customer demand, with the automaker indicating that it could sell an additional 2,000 to 3,000 vehicles each month if supply limitations were resolved. Velusamy R, president of the company's Automotive Business and managing director of Mahindra Electric Automobile, said monthly demand had risen to 10,000-11,000 units after retail sales exceeded 8,000 vehicles in each of the previous couple of months.
The company is increasing its monthly electric SUV production capacity from about 8,000 units at the end of March to 12,000 units by the end of the current financial year. Velusamy said supply constraints were affecting several other automakers in the electric vehicle industry as well.
Mahindra is currently India's second-largest electric car seller after Tata Motors. Its electric vehicle portfolio comprises four models: XUV 400, BE6, 9E and 9S. The company said high petrol and diesel prices were encouraging customers to consider electric vehicles because of their lower running costs.
Improving charging infrastructure and longer driving ranges are also strengthening customer confidence in electric vehicles. Overall passenger vehicle demand is being supported by goods and services tax reforms and the festive season, with the company reporting strong buying interest across sport utility vehicles powered by both internal combustion engines and electric drivetrains.
Mahindra has also entered the compressed natural gas-powered SUV segment with the launch of the XUV 3XO ZNG. The model has a starting ex-showroom price of Rs. 1 mn. The company attributed its entry into the mainstream CNG passenger vehicle market to higher petrol and diesel prices, the expansion of CNG outlets, particularly in northern markets, and the rising share of CNG vehicles among passenger cars.
Published by HT Digital Content Services with permission from Construction World.