Jawa scrambles to boost capacity as competition rises1 min read . Updated: 06 Jan 2021, 08:31 AM IST
- Jawa hasn’t been able to ramp up production as much as the management had expected
Classic Legends Pvt. Ltd, the maker of Jawa brand of premium motorcycles, is facing a tough test with intensifying competition and order cancellations due to its inability to stick to customer delivery schedules, five industry executives said.
The Mahindra and Mahindra Ltd-backed company has been struggling to boost capacity in line with strong demand for its motorcycles which looked to challenge Royal Enfield’s market dominance.
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One of the five executives cited above said Jawa hasn’t been able to ramp up manufacturing as much as the management had expected and this might adversely impact its business amid growing competition.
“They were planning to manufacture around 7,000 to 8,000 units per month but couldn’t due to shortage of quality parts from suppliers in India and international markets. Now they are stuck with around 3,500 to 4,000 units on a monthly basis and the company is trying to figure out ways to increase production going ahead," the person said, requesting anonymity.
The person said also that the company has constantly faced issues with supplies of quality spare parts.
While the company did not comment on monthly production numbers, Ashish Singh Joshi, chief executive, Classic Legends, said in an interview in November 2020 that his company was facing supply constraints but was confident of increasing output.
“We continue to work with the suppliers. We have looked at their upstream and downstream activities, and areas where we could help. All that helped us to sell more than 50,000 units so far. We are very confident of the future with how we are scaling up. We are also very confident with the new product line-ups we are readying for next year," Joshi said.
At least half a dozen Jawa dealers said on condition of anonymity said that Jawa motorcycles have a waiting period of about two months and as much as 20-25% of orders have either been cancelled or put on hold due to the supply shortage.