Mahindra & Mahindra held its Q2 FY25 meet and revealed some insights and developments about the business. The automotive division of the brand registered a remarkable 40 per cent increase in comparison to the previous year. It also sold its highest-ever total of 2,31,000 vehicles this quarter including SUVs that amount to a total of 1,36,000 units. It held a 21.9 per cent market share in the SUV space in India which saw a spike due to the launch of the Thar Roxx. The company also maintained a 52.3 per cent market share for commercial vehicles under the 3.5 tons category.
The festive season brought in great results too as the company sold a total of 54,504 units in October with the majority sales coming from the Scorpio and XUV 700. The company says it now has a dealer inventory of under 30 days.
Thar And Thar Roxx
The Thar saw a decline in sales due to the cannibalisation from the newly launched Thar Roxx. However, the company claims that it has gotten rid of most of the unsold inventory. It will also increase the production capacity to 9,500 by January, 2025 with the possibility of increasing 1,000 units more if the demand arises. The waiting period of the Thar Roxx is 9 to 15 months depending on the variant and drivetrain chosen.
Dr. Anish Shah, Managing Director & CEO, M&M Ltd. said, "Our businesses have delivered a solid operating performance this quarter. Auto and Farm continued to strengthen market leadership by gaining market share and expanding margins. MMFSL GS3 remained under 4% (at 3.8%) and end losses have improved structurally. TechM delivered a good quarter and the long-term focus remains on reverting to past profitability. Our growth gems are progressing well on the 5x challenge."
Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, "In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased by 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches. Volume market share for LCVs <3.5T stands at 52.3%, a rise of 260 bps YoY. The auto standalone PBIT margin was 9.5%, a gain of 140 bps YoY (excl. PY gain on LMM transfer). In our tractor business, we achieved our highest-ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY."
Mr. Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd. said, "While the Auto and Farm segments continue to deliver the strong performance we have come to expect of them, this quarter also reflected the strength of our Services portfolio. This has been the trend through H1 F25 and we expect it to continue for the rest of the year in line with our strategy."