[bhansali_hardik]

Originally Posted by condor

Logical, though would like to know the extent of impact on other manufacturers

The process for a customer to buy a car can take more than 1-2 months for most cases. The review & decision part, review of financing, selecting and the negotiation with the dealer. It's only after this that the debit-at-click-of-a-button happens.

Comparatively, the manufacturer's process is a more fixed, and shorter, 1 month. There too, the transfer happens very fast - but after all the processes have been followed.

Almost instantaneously if we consider the batch process for refunds.

Even-Stevens, what say ?

Absolutely not! If they can accept my payment on UPI/Card/Cheque/Cash they should have the basic process in place to return the money on similar manner even if they do decide to deduct a small fee. I pay using UPI and then will be asked to submit a cancelled cheque leaf! Why?

Also, paper work to buy a car might be lengthy but accepting money as booking amount is easy and also the paper work is handled after they accept booking amount!

None in the industry want to pay money back instantly and they want to hold on to interest free money for as long as they can added with the sales that they achieve these days without actually trying to sell cars, most of the dealers are goons and their bosses are good only if they can squeeze money!

The chip shortage is a real thing, with the post installation of ECU, Infotainment system and competence of most of the dealers, added with 1st Gen of cars from mahindra’s stable sounds a perfect script for a horror movie!

[sheelapratosh]

Originally Posted by bhansali_hardik

Absolutely not! If they can accept my payment on UPI/Card/Cheque/Cash they should have the basic process in place to return the money on similar manner even if they do decide to deduct a small fee. I pay using UPI and then will be asked to submit a cancelled cheque leaf! Why?

You are spot on. I paid using UPI. Refund should be the same way using the same means. No manual process accepted - Not from a company promoting ADAS..

The basic question being.. If they know that they have insane wait times,. Then what’s the point in marketing a new product in the middle of this supply crisis?

Did they fix the supply issue? I guess not.
Are they playing marketing game? Probably yes.
Are the prices good? Absolutely.

[dr_TJ]

This thing worries me. I am in the waiting list for a Mahindra Thar. And this Chip shortage is a big issue.

Now Mahindra has added XUV700 to its production line and this makes things worse.
If Mahindra could have figured out to shift its Infotainment shown info to the MID like TMPS info, 4x4 Engagement info and given a discount on the LX variants, I would happily take that without the infotainment system.

[GNG19]

Originally Posted by sheelapratosh

Not surprising. I canceled my Thar booking due to insane wait times. And they want a month to process refund.

You'll be lucky if it's only a month. I've been waiting since the 30th of June for my refund. Calls and emails go unanswered with the Koncept Mahindra dealership in Gurgaon.

Back OT: Can't blame Mahindra for the chip shortage, of course, but proper Customer Service and communication would go a long way in making sure customers don't cancel bookings or otherwise end up with a sour experience.

It's like dealing with a flight that's delayed. Can't blame the airline for weather or Air Traffic-related delays, but you'd sure expect proper service on board and the airline employees to be effective communicators.

[swunkjyn]

This is going to be a major impediment in the sales and the deliveries that will be made. It is not only Mahindra but every major car manufacturer has been hit. Plus I feel that the prices that have been shared will be prelimenary, once the initial batch of cars is booked, just to cover-up the extra cost the prices will be increased. And Intel has stated that this shortage may continue till 2023.

I hope there is a solution for this by March 2022.

[YashD]

Playing the devil's advocate here and my known folks might say it's just my biasness being not fond of Mahindra but obviously, M&M knows this extremely well hence the whole pricing strategy seems like a publicity stunt to me, more a sham to boost the initial hype on the product especially after all the negative publicity they've received for the vehicle due to the older leaked images.

Furthermore, the company knows they won't be able to deliver much products and someone above or in one of the pages have mentioned that as per his sources, only 500 XUV700 will receive the chips next month hence it's quite clear that supply will be extremely limited for the vehicle. Now, to add to that these guys will rake in bookings, publish it, come in the good books of the dealerships and deliver the vehicle as per the availability slowly raising the prices.

At the launch prices (Introductory), they will sell a handful of pieces and well we all know the cock and bull stories manufacturers can give to raise the prices ! Mahindra seems to be in a win win situation here cause guys, let's be honest irrespective of how popular you want your product to be being a manufacturer you will never kill your entire portfolio with a single product.

Though having said that, Kudos! Mahindra for such an excellent strategy, absolutely brilliant marketing & sales strategic move. These guys have earned my respect big time.

[Bibendum90949]

Originally Posted by audioholic

Manufacturers cant stop the assembly lines due to the lack of certain parts and hence cars are manufactured and stored in all ways possible. Once the ECUs are available, they would be installed and then sent to the dealers

In such cases, I just wonder what would be the production date that will go on records? Will it be the day it rolled out of the assembly line with a temporary ECU or the day the car is fitted with it's orginal ECU. When VIN is decoded, it should ideally show the day it's fitted with ECU and not the day it's rolled out of factory with temporary ECU I reckon. Else later on, one would cast a doubt on a car's antecedents with huge variance in production date and registration date.

[ram87pune]

Originally Posted by Bibendum90949

In such cases, I just wonder what would be the production date that will go on records? Will it be the day it rolled out of the assembly line with a temporary ECU or the day the car is fitted with it's orginal ECU. When VIN is decoded, it should ideally show the day it's fitted with ECU and not the day it's rolled out of factory with temporary ECU I reckon. Else later on, one would cast a doubt on a car's antecedents with huge variance in production date and registration date.

In the assembly shop the first operation that is performed is always punching the VIN on the painted BIW which comes from the paint shop. All the other operations and fitments are done after that. So even if you keep some cars aside for let's say "awaiting ECU", the cars will still have the VIN which will give you the exact date on which the assembly began.

So for example if a BIW of XUV700 is dropped on the assembly line on 1st of August and the car is kept in some yard without ECU and let's say the ECU is fitted on 30th August, you still get the manufacturing date by decoding the VIN as 1st of August. Hope this helps.

[GTO]

As I've said many times before, the chip shortage that some manufacturers are facing is self-inflicted. A few brands got damn scared due to Covid & lockdowns and reduced their order size to suppliers. Some others however remained optimistic. An example is Tata = Just look at their sales numbers over the past 10 months; continuously hovering between 23000 - 30000 cars / month! Tata made a bold bet and it paid off handsomely.

It sure looks like Mahindra was more cautious than the others in its supplier commitments. For one, they wouldn't have expected the Thar to get this kind of demand. And while the Thar's backlog runs a year long, here comes the XUV700.

I don't expect the situation to improve for another 1.5 - 2 years.

[sachin_nair3]

This is all just noise created by other manufacturers trying to take away the sheen from the market disruption that Mahindra has caused with the XUV 700

[callmeneo]

Agree with GTO's comments. Most of the manufacturers made a bold bet that the tide will turn and there wont be any slump. Hyundai/Kia has good enough electronics on their offerings as well,but never heard them give this reason. Makes me wonder if M&M did not have the confidence that XUV700 would be such a hit with the masses.

[84.monsoon]

Originally Posted by GTO

As I've said many times before, the chip shortage that some manufacturers are facing is self-inflicted. A few brands got damn scared due to Covid & lockdowns and reduced their order size to suppliers. Some others however remained optimistic. An example is Tata = Just look at their sales numbers over the past 10 months; continuously hovering between 23000 - 30000 cars / month! Tata made a bold bet and it paid off handsomely.

Great point, article below details how Hyundai accelerated orders when others held back or cut on orders.

https://www.reuters.com/article/us-a...-idUSKBN2AQ0EF

In addition, how far a manufacturer is affected also depends on level of vertical integration, strength of supplier partnerships and clout of the group overall. Hyundai and Kia face less of this issue since they have strong partnerships with Samsung and other suppliers, they even co-develop semi-conductors with Samsung. Tata may have a similar conservative ordering philosophy and tight inventory control as Mahindra, but the overall clout of the TATA group may have allowed them to get better prioritization. They are a big player in electronics with their own retail chain Croma and their communications business. This may have allowed them to swing supplies in their favor using group level clout.

[Pancham]

There goes my Thar. Booked in November and relentlessly waiting for almost 10 months.

Does anyone know how to set up semi-conductor manufacturing plant?

[shortbread]

Originally Posted by GTO

As I've said many times before, the chip shortage that some manufacturers are facing is self-inflicted. A few brands got damn scared due to Covid & lockdowns and reduced their order size to suppliers. Some others however remained optimistic. An example is Tata = Just look at their sales numbers over the past 10 months; continuously hovering between 23000 - 30000 cars / month! Tata made a bold bet and it paid off handsomely.
.

It could be optimism or maybe even sheer luck.

It could be that Tata was late to react when the pandemic hit and forgot to revise orders with suppliers!

[Nithesh_M]

This is probably why the XUV700 pricing is so low.
By the time this chip shortage is sorted their prices will be hiked 3 to 4 times to over a lakh rupees.

Also does this mean the initial owners will probably get cars without infotainment system then?

Originally Posted by callmeneo

Hyundai/Kia has good enough electronics on their offerings as well,but never heard them give this reason.

what are you saying? Hyundai is unable to source the 10.25 screens and has reduced production of SX and SXO variants. Why do you think they introduced SX Executive variant without infotainment system?