Mahindra & Mahindra aims to maintain leadership in the SUV segment

According to the group CFO Manoj Bhat who talked to PTI, Mahindra & Mahindra plans to maintain its market-leading position in the quickly expanding sports utility vehicle industry in the current fiscal year. 

In an effort to reduce waiting times for different models, the company, which has 2.92 lakh units of sports utility vehicles (SUV) on order backlog, also expects to ramp up production capacity by the end of this year.

According to Bhat who talked to PTI, the number of open bookings generated by the car giant is evidence of the enormous demand for the company’s products.

‘If you look at the last quarter’s booking numbers, there is huge demand across the board… demand for the XUV300/400, Thar, and demand for the Scorpio and XUV700 range continues to be strong… so from that perspective, it is good that the customer is getting more choice with more products,’ the speaker said.

Bhat responded to PTI: ‘That is our objective’ when asked if the business plans to take the lead in the SUV market this fiscal year.

Regarding the top spot, he stated that ‘the company feels confident about its product portfolio,’ but in the end, it will be the consumer who makes the decision.

The domestic passenger vehicle market, which produces 39 lakh units annually, now has the largest SUV sector. The segment was responsible for 47% of the PV segment’s entire sales in May.

In the SUV market, Mahindra & Mahindra is in competition with brands like Maruti Suzuki, Tata Motors, and Hyundai. According to Bhat, Mahindra also held the top spot in terms of revenue market share for SUVs during the previous fiscal year.

The company announced its highest-ever sales volume in FY23, up 50% from 2021–22 to 6.98 lakh units.

According to Bhat, the auto industry would increase production capacity by the year’s end in an effort to reduce lengthy waiting times for its varied models.

According to the corporation, it increased its SUV production capacity in FY23 from 29,000 units per month to 39,000 units per month.

In FY24, it now intends to scale it up to 49,000 units per month.

‘Capacity increases will take place in the auto segment by the end of the year, but in the interim, I believe the focus will be on improving utilisation,’ he said.

Demand-wise, the business continues to have a strong reaction with no signs of slowing down.

Mahindra & Mahindra reported its highest yearly profit in a fiscal year—a consolidated PAT of Rs 10,282 crore—for the 2022–23 fiscal.

The automaker increased the capital expenditure (capex) budget for the three-year cycle of FY22-FY24 from the previously disclosed Rs 15,075 crore to Rs 15,900 crore.

For feedback and suggestions, write to us at editorial@iifl.com