Management emphasized maintaining strong operating performance while driving market share growth. A key focus was on capacity expansion and improving margins across segments. The automotive segment continues to lead in SUVs, with volume growth of 24% for the quarter. The farm machinery segment reported a 34% revenue increase but with room for additional growth. Challenges in international markets were offset by domestic gains.
For FY25, Mahindra & Mahindra projects mid-to-high teens growth, supported by strong performances in the automotive and farm equipment segments. Capacity expansions and new product launches, such as the upcoming electric vehicles (EVs), will be critical drivers of revenue growth.
Auto margins improved by 180 basis points, with expectations of continued margin expansion as operating leverage strengthens. Tractor margins are expected to stabilize around 19%-20% in key quarters. Management anticipates maintaining profitability through careful cost management and leveraging economies of scale.
The company plans to invest ₹27,000 crores in the automotive segment over the next few years to expand capacity and launch new products. In addition, Mahindra is allocating ₹5,000 crores for farm equipment segment CAPEX, primarily focused on product development and international market expansion.
Management noted a tepid demand environment but expressed confidence in sustaining growth through innovation and strategic price adjustments. Rural demand for tractors and commercial vehicles is expected to pick up in the latter half of FY25, driven by improved government spending and favorable weather conditions.
Production efficiency improvements are evident in the automotive sector, with expanded capacity allowing Mahindra to reduce delivery times for key models like the XUV700. The farm segment saw improvements in tractor production efficiency, leading to higher margins.
Increased capacity in the automotive sector has tripled over the last four years, providing significant operational leverage and driving margin improvements. The farm segment also benefited from increased production efficiencies, particularly in core tractor operations.
Mahindra & Mahindra aims to mitigate supply chain risks by increasing in-house capabilities and working closely with suppliers. To address regulatory challenges, the company is focusing on innovation in sustainable technologies and aligning operations with government policies. Further investment in digital transformation and enhancing customer experience are top priorities to maintain competitiveness in key markets.