New Delhi: Mahindra and Mahindra Ltd shrugged about the slowdown in the domestic auto market as it surpassed the rest of its business growth in the previous fiscal year.
India's fourth-largest passenger car maker sees revenue in a traditional March quarter surge of 20% year-on-year revenue ₹425.99 million, profit increased by one fifth ₹32.95 billion.
Mahindra's revenue climbed 14% throughout the fiscal year (2024-25). ₹$1.59 trillion, profit 15% ₹Behind the surge in sales of sports utility vehicles (SUVs), the company has a 23% share.
Sales in FY25 increased by 20% to 551,000 compared to the 2% growth in the industry.
Anish Shah, managing director and CEO of Mahindra Group, remains optimistic about the domestic auto market and expects urban demand to be shortly there.
“The sentiment in the market is positive in the market,” Shah said in a post-graduation media briefing on Monday. He added: “With the portfolio led by the SUV, the quality of the products our team launched has also attracted strong consumer interest.”
Mahindra's inventory is also under control for less than 30 days, while the industry averages about 50 days, indicating strong sales.
Mahindra management's comments are contrary to Maruti Suzuki India Ltd's skeptical observation about the domestic auto market.
“The growth in the domestic market is very limited. For a country with such low automotive penetration, the 2-3% growth rate will not increase at all. This is a concern,” Maruti Suzuki's RC Bhargava said in a media briefing last month after the company.
Maruti Suzuki, India’s largest passenger car seller, has a market share of 40%, with domestic auto sales reported a 3% year-on-year increase to about 1.9 million units in 2024-25. Net profit increased by 7.5% ₹1.45 billion, with revenue reaching 7.7% to ₹1.53 trillion.
“Unless any change occurs, the domestic market will remain heavy. In the year, sales of small cars fell by about 9%. If sales of cars fell so much, 88% of people earned people can offer, how do we expect growth?” Balgava said in a media briefing.
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Mahindra is more optimistic
Mahindra has different evaluations of the domestic automobile market.
“As interest rates fall and income tax benefits begin, demand sentiment in urban markets will improve in the coming months in the coming months,” Mahindra Group said in a briefing.
The company has also witnessed strong demand in the electric vehicle segment, with its two newly launched SUVs receiving more than 30,000 pre-orders.
As of May 3, the company has delivered 6,300 electric vehicles. According to Mahindra's management, the waiting time for the company's electric vehicles is 4-5 months.
“We are focused on getting revenue market share in this segment. Our average electric vehicles are priced higher than other electric vehicles,” Jejurikar said. Mahindra jumped to the top of the passenger electric vehicle market with a revenue share of 33.2%.
Investors draw inspiration from the differences in performance between Maruti Suzuki and Mahindra. Although Maruti Suzuki's share price fell 8.5% in fiscal 25, Mahindra's share price soared more than 38% in fiscal 2018.
Mahindra shares rose 3.34% on Monday ₹NSE's 3,024.00, while the Nifty Automatic Index rose 1.85%.
Read also | Maruti Suzuki’s struggle for dominance: Is EV Pivot enough to restore market share?
