Mahindra and Mahindra (M&M) experienced a decline in demand for its SUVs in the April-June period, notably for entry-level XUV models. Monthly bookings dropped by 9,000 units, from 57,000 vehicles per month in the previous period. The reduction was mainly observed in the subcompact SUV segment, led by XUV300 and XUV400 models, along with a decrease in Thar bookings. Demand for Scorpio-N and XUV700 remained strong. The semiconductor supply chain disruptions impacted M&M, leading to production halts and lower manufacturing capacities. Despite challenges, M&M aims to achieve its Q4FY2024 exit capacity estimates of 49,000 units.