₹37,000 crore over the next three years, and targeted capacity expansion to 72,000 units per month by the end of FY26 (up from 49,000 per month in FY24) are the key drivers for the homegrown auto major. M&M's increased focus on EVs is evident from its planned auto capex of ₹27,000 crore, with as much as ₹12,000 crore allocated for EVs. The company plans to launch nine ICE SUVs, seven battery electric vehicles (BEVs), and seven light commercial vehicles (LCVs) by 2030.
In FY25, the management is bullish on the upcoming five-door Thar and therecently-launched XUV 3XO compact SUV, which received 50,000 bookings in just 60 minutes. M&M is producing 9,000 units of this model per month and plans to increase it to 10,500 soon. In the compact SUV segment, the company is in the fifth position, and aims to be among the top two following the launch of 3XO.
“We see M&M’s production ramp up improving in FY25 along with new model launches. We also see M&M offering a differentiated BEV as a near-term catalyst, helping it build on its success amongst the urban affluent customer base," BNP Paribas said in a note. M&M has projected UV sales volume growth of mid-to high-teens in FY25.
It has an order backlog of 220,000 units. The company maintained its numero uno position in SUV revenue market share at 20.4%, up 80 basis points (bps) year-on-year during the March quarter (Q4FY24). Ebitda margin, at 12.9% (up 10 bps sequentially), beat consensus estimates, helped by 50 bps sequential rise in Ebit margin in the auto segment.
In FY24, tractor industry volumes fell by 7% as the rural market remained under pressure. Despite this, M&M gained market share of 40 bps to reach 41.6%. Ebitda is short for earnings before interest, taxes, depreciation,
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