With revenue of INR 21,654 crore in Q3FY23, Mahindra and Mahindra has announced a 41% YoY growth over Q3FY22, when it had reported revenue of INR 15,349 crore.
The company also reported revenues for the first nine months of 2023, which grew 54% YoY to INR 62,389 crore as opposed to INR 40,549 crore for the same period last year.
Mahindra’s auto vertical generated revenues of INR 14,797 crore in Q3FY23, while the farm sector generated INR 6,278 crore in the same period. This has been the highest revenue for auto and the farm segments, said the company.
Rejesh Jejurikar, ED, M&M, said on the back of higher government spending, four years of normal monsoon and improving terms of trade, the company anticipated that the tractor industry would witness a 10% YoY growth from last year’s 8,42,266 units. With volumes of almost 105,000 units in the tractor segment, 176,000 units in the PV segment and 11,800 units in the e3W segment, the company has witnessed highest ever volumes for the respective sectors.
The Farm equipment segment has seen a 15% YoY in the tractor volumes, said Jejurikar, who added that the company has also added 120 new dealerships in the past year.
The growth in the business has been driven by the introduction of 15 new products, moving to an in-house manufacturing plant in Pithampur and channel & global expansion. The company believes its revenues in the sector will increase 10X by 2027.
In passenger vehicles, Mahindra sold 90,797 units of its SUVs in the said quarter, and 58,327 units of its LCVs under 3.5T. At 20.6%, M&M claimed revenue market share leadership for the fourth consecutive year in Q3FY23, while in the LCV <3.5T it has achieved a revenue market share of 46.5%.
Though the numbers are impressive, the company continues to face huge waiting periods for its SUV line-up. The company confirmed the chip shortage situation has improved from earlier. The current level of open bookings is 266,000 units, with the Scorpio N and XUV700 witnessing the highest traction with 119,000 and 77,000 bookings respectively.
Mahindra’s XUV400, which was launched on January 26, 2023, has crossed 15,000 bookings in just 13 days, said the company.
In the last mile mobility segment, Jejurikar said the company is witnessing about 8% EV penetration. While answering a question by Mobility Outlook on its plans to add e3W in the L5 category and LCVs, Jejurikar said the company believes in the electrification story and will prepare to add more EVs to the mix.
Earlier this month, the company had announced the merger of Mahindra Electric Mobility with M&M. The company also plans to set up electric vehicle manufacturing facilities at Zaheerabad, Telangana, which will cater to the production of e3Ws and e4Ws in the last mile mobility space, including the Jeeto EV.
M&M plans to invest about INR 1,100 crore in the plant over the next eight years. Works on the expansion of the plant will begin in the next three months.
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