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Informist, Wednesday, Jul. 30, 2025

--M&M: Light commercial vehicle industry remains in a low growth phase 
--CONTEXT: Comments by M&M mgmt in post-earnings press conference 
--M&M: Rural sentiment is better, urban is still weak 
--M&M: Hopeful upcoming festivals will turn around subdued urban sentiment 
--M&M: See no disruption in Q2, Q3 output due to rare earth magnets 
--M&M: Not accrued any PLI benefit in electric vehicles business

By Anand JC and Simran Rede

NEW DELHI/MUMBAI – Mahindra & Mahindra Ltd. said it is "comfortably placed" on rare earth magnet supplies and does not expect to face any production issues till at least the final quarter of the financial year. "We have taken a variety of actions like substituting rare earth with light earth, ferrites and multiple sets of actions," its management told analysts and reporters in a post-earnings conference call on Wednesday. 

The automotive giant, which advanced its quarterly earnings by a day to Wednesday, reported a net profit of INR 34.50 billion on revenues of INR 341.43 billion. The company's revenue market share in the sport utility vehicle segment grew 570 basis points to 27.3% during the quarter, with its despatches growing 22% on year.

M&M expects its sport utility vehicle sales to grow in mid-to-high teens in 2025-26 (Apr-Mar) amid subdued demand sentiment for passenger vehicles. The company plans to launch two new electric sport utility vehicles this year, and has an "aggressive" launch calendar for this year. "Of course, there's a big deterioration in the economic environment over what it is now, but the way things are, we stay with our guidance," the company said.

It has not accrued production-linked incentive benefits for its two electric cars so far. It is currently awaiting a final technical audit certification, which is expected to be received within the next two quarters. "Once that comes in, at whichever time, in the quarter two or early quarter three, we will accrue the PLI for the XEV 9e," the company management said. The company plans to apply for benefits for its BE 6 electric car in the final quarter of FY26 and the process takes up to three months, M&M said. 

Overall, the company sold 247,249 vehicles in the June quarter, up 17% on year. Tractor sales grew 10% on year to 132,964 units. M&M attributed robust tractor sales to an improvement in rural sentiment. However, sentiment in urban areas remains weak despite strong fundamentals, it said. M&M expects demand for passenger vehicles to pick up in the coming months, driven by the festival season.

The company sold 61,000 light commercial vehicles with a capacity below 3.5 tonnes in the June quarter, 4% more than the base quarter. "... the (light commercial vehicle) industry is in a slow growth phase, and our market share continues to be strong and robust," it said.

On Wednesday, shares of M&M closed 0.3% higher at INR 3,208.90 on the National Stock Exchange.   End

Edited by Saji George Titus

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