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M&M expects to post better auto sales growth than industry in FY25
This story was originally published at 23:05 IST on 7 November 2024
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--M&M: See auto sales growing in high teens in FY25
--M&M: Expect co's auto sales to grow ahead of industry in Oct-Mar
--M&M: SUV capacity at 54,000 per month, up 10% from March
--M&M: Plan to up only Thar Roxx capacity in internal combustion engine space
--M&M: SUV revenue market share up 190 bps YoY at 21.9%
--M&M: To state electric vehicle ops' financial performance separately
--M&M: Hybrid vehicles not priority now, but not saying won't make them
By Darshan Nakhwa and Akshay Johnson
MUMBAI – Mahindra & Mahindra Ltd. is confident of delivering a better growth rate than the automobile industry's for 2024-25 (Apr-Mar), the company's management said on Thursday. The automaker has maintained its earlier growth guidance of mid- to high-teens growth for FY25.
"We're not increasing that number (guidance) because in the second half of the (last) year, we did have a much higher base. So, I'd be ahead of the industry. We do intend to continue to grow at that pace," Rajesh Jejurikar, the company's executive director and chief executive officer of the auto and farm divisions, said in a press conference on Thursday.
During Apr-Oct, the company sold a total of 539,236 vehicles, up 12.6% on year. This included despatches of passenger and commercial vehicles and three-wheelers. During the period, M&M sold a total of 314,714 passenger vehicles in India, up 22% on year. In comparison, its commercial vehicle sales were flat on year at 155,849 units, and three-wheeler sales rose 4% on year to 50,440 units.
Mahindra & Mahindra is India's largest sport utility vehicle manufacturer in terms of revenue market share, which rose by 190 basis points on year to 21.9% in Jul-Sept. In Jul-Sept, its sport utility vehicle manufacturing capacity stood at 54,000 units per month, up 10% from the March quarter. The company plans to raise it to 64,000 units per month by end of FY25.
Responding to a question on increasing its sport utility vehicle manufacturing capacity, Jejurikar said the company doesn't intend to increase its capacity of internal combustion engine sport utility vehicles immediately, but may expand its Thar ROXX capacity by a couple of thousand units next year due to strong demand. Currently, the automaker has a capacity to manufacture 9,500 units of Thar models, including the three- and five-door variants, per month. According to Jejurikar, the company is facing high demand for its Thar ROXX model, and it currently has a waiting period of 9–15 months based on the variant.
On the electric vehicle front, the automaker plans to launch two electric sport utility vehicles--the 'XEV 9e' and the 'BE 6e'--on Nov. 26 in Chennai. Currently, it offers XUV 400 in the electric passenger vehicle segment. In Oct-Dec, M&M expects expenses related to new launches to weigh on its margins. "There'll be some temporary kind of impact on the margins because of all of these costs that we will add," the Mahindra Group Chief Financial Officer, Amarjyoti Barua said. Going forward, the company also plans to state electric vehicle operations financial performance separately.
On introducing hybrid vehicles in the future, Jejurikar said the company remains committed to its electric vehicle strategy, but that doesn't mean they will never make hybrid vehicles. "At any point of time, we feel our customer segments in which we play feels the need for hybrid technology. We would look at coming in at that point of time," he said.
Thursday, M&M reported better-than-expected performance for Jul-Sept on the back of strong growth in sales. It clocked a net profit of INR 38.41 billion on top line of INR 289.19 billion. The automaker's shares closed 1.5% lower at INR 2,891.35 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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