However, the company is still concerned about the ready availability of electronic chips (sachdev, 2022)., which is a significant challenge affecting the manufacturing industry demand solutions and deadlines (rivera letelier et al., 2020).

Published by Jeannie R. Ferrell

Dec 8, 2022


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Please respond to both of these posts with a minimum of 140 words and two sources each. I will add both the posts below.
Strategic Capacity
Mahindra & Mahindra (M&M) is a growing international Indian vehicle industry. The company produces a wide range of vehicles and recently established plans to increase its capacity and expand the production of its recent sport utility vehicles by nearly 70% from current units. Some key drivers of the increase in the demand for M&M’s SUVs are the sustained growth in the market and expanding order book. According to Sachdev, the company had 260,000 unfulfilled SUV orders in November (Sachdev, 2022). In addition, each month, the company obtains almost 15,000 new orders for its two SUV models compared to the current production capacity of only 6,000 units (Sachdev, 2022). The sustained orders against a smaller production capacity increase the waiting time to nearly months for getting the SUVs orders.
Another key driver for demand is the increase in the overall automobile sector volumes as the company continues to develop new products. The tractor market has remained consistent, and the volumes have improved significantly in recent months. According to Kharlamov, the automobile industry’s profit margins have also improved considerably after introducing introductory pricing, contributing to cost savings and declining commodity prices (Kharlamov et al., 2020). In addition, M&M is considering expanding the production capacities for other significant products like XUV700 and Thar in the next 12 months. As a result, the SUVs will report an increase in the monthly production of units.
The company projects that by the fiscal year 2027, it will obtain around 20 to 30% of the overall SUV sales from electric cars (Sachdev, 2022). However, the company is still concerned about the ready availability of electronic chips (Sachdev, 2022)., which is a significant challenge affecting the manufacturing industry demand solutions and deadlines (Rivera Letelier et al., 2020). In addition, the recovery of the global economy will contribute to the growth in the demand for automobile products for M&M. The company’s sustainable development based on a strategy capacity relates to Christians in how they will present themselves to the world as children of God. Therefore, they must present Jesus in their actions with good works as something desirable for others. “For we are His workmanship, created in Christ Jesus for good works (NKJV, Ephesians 2:10a, 1982).”
Capacity Discussion
Fueled by climate change reforms and the commitment of powerful countries like the United States, China, and the European Union to phase out gas-powered vehicles, electric vehicles (EVs) are not only becoming more popular but are becoming a requirement which has led to their exponential growth over the past decade (Dennis, 2021). Additionally, more companies such as Amazon, Ikea, Uber, Lyft, and others are committing to transitioning their mobile fleets to EV.
Tesla, Inc. has been a major contributor to this growth and has been the leading company for EV sales in the United States as well as a top supplier in other countries. This growth in demand has Tesla taking on a dual capacity strategy of both leading, increasing capacity for anticipated future demand, as well as following, increasing capacity to meet increased demand (Stevenson, 2021). These strategies have led to Tesla not only increasing capacity at established manufacturing plants but has created the need to create more plants, both in the U.S. and abroad, to meet the increasing demand. For example, the plant in Fremont, California is expected to increase production from 450,000 vehicles per year to 600,000 and the current plant in China is expected to reach 1,000,000 vehicles a year from its current capacity of 864,000 with the addition of new plants opening in Texas and Germany (Iliff, 2022). Increasing vehicle production also means an increase in supply to meet production demands. For EVs, this means battery production. Due to the increase in demand for Tesla vehicles, LG Chem Ltd, a battery manufacturer, has reportedly doubled its capacity to meet demand and is investing $500 million toward increasing production (LG, 2020).
Environmental concerns are a root cause for the current EV demand. Regardless of personal opinions about EVs and Tesla, the bible is clear about our duty to take care of the earth. We were given “dominion over…every living thing…upon the earth” (Gen. 1:28, KJV) and charged by God “to work it and take care of it” (Gen. 2:15, NIV). May these demands never exceed our capacity to meet them.


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