Waiting period for cars have further increased: know the reason why?

The crisis in the semi-conductors have kept the customers waiting for their new car deliveries from one month to as long as 2 years for Mahindra XUV700.

While the original equipment manufacturers across the industry are addressing supplier issues and they are increasing investments on behalf of suppliers, the crises seem to linger. The longest waiting period for the Mahindra XUV700, which has a waiting period, which range from 18 to 24 months.

Maruti is also facing the heat on CNG vehicles, the company stated that, it has got total order bank of 295,000 vehicles of which 1,45,000 are CNG.

When it comes to CNG, the waitlist is about 5 to 9 weeks, stated the company spokesperson. The rest of the 150,000 orders for ICE vehicles where the waiting period ranges between 3 weeks and six weeks.

The company is working very closely with vendors, but they are also waiting for the semi-conductor's issue to resolve, added the spokesperson.

For Hyundai's average waiting period is five months. For Creta, it would go up to 8 months, while Alcazar has a wait period up to 5 months and venue three to four months.

For Tata Motors the waiting period ranges from 15 days to four months.

There is always demand for New Forever range, it continues to be strong even as the semiconductor situation and supply-side challenges remain uncertain. While we witness the waiting period for the cars range from 15 to 4 months, depending on the model and variants, we would continue to monitor the situation very closely while refining our agile, multi-prolonged approach to secure supplies and reduce the wait time, stated Rajan Amba, Vice President, Sales, Marketing and Customer care, Tata Motors Passenger Vehicles Ltd.

While speaking at the Mahindra and Mahindra financial results press conference, Rajesh Jejurikar, executive, director, farm and auto sector, stated that, we have a monthly production of nearing to 5000 vehicles for XUV700. The monthly bookings are about 9500 units. And the open bookings stand at 78000.

When asked if Mahindra faced any cancellations, Jejurikar stated, Cancellations for XUV 700 is more than 10 to 12%. People are booking in advance and are not selling their old vehicles. They are ramping up production. We are also increasing the investment in our supplies.

With regards to impending launch of Scorpio N and the kind of waiting period, customers might face, Jejurikar stated, "we have already started the production even before the reveal of the vehicle. We would start with the order bank, but we have been forecasting model. We did not get the mix right for the XUV700. The MX variant received 5% of the booking whereas the AX variants have got more than the lakh bookings.

The AX7 variant of the XUV700 has more than 200 semiconductor chips and the company is not ready for the high demand for the higher variants. Jerurikar stated that, the company has made a 2,000-crore capital addition for capital addition.