Mahindra & Mahindra cranks into top gear as demand tailwinds accelerate growth
₹27,000 crore over FY25-27. Its SUV production capacity is projected to increase from 49,000 units per month now to 64,000 units by in FY25 and 72,000 units by the end of FY26. Also read | Mahindra & Mahindra in the fast lane on higher capex, upcoming launches While the management sounds confident, investors should note the growing competitive intensity in the SUV space, with companies like Maruti Suzuki, Tata Motors and the IPO-bound Hyundai India lining-up a slew of launches.
In the light commercial vehicles segment, M&M has a market share of about 49%, which it seeks to bolster with seven launches by FY30. It is also looking to more than double its market share in trucks and buses to 7-8% in the next five years with new launches. In the tractor segment, the management expects volumes to grow by 5-6%, driven by forecasts of above-normal rains this monsoon and the success of its new launches.
Tractor count in India is projected to jump to 17 million units by 2030 from 8 million now. Also read | Mahindra set to drive in its first electric truck in 2025 This would be backed by growing farm mechanization and consistent increase in cropping intensity, which presents a huge headroom for growth. M&M had a market share of around 41% in the domestic tractor market in FY24.
The M&M stock hit a new 52-week high of ₹3,013.50 per share on 18 June. In this calendar year so far, the stock has rallied 74%, outperforming the Nifty Auto index’s growth of about 36% by a wide margin. Lately, performance in M&M key segments has improved and the company has prioritized prudent capital allocation practices.
This had aided sentiment towards the stock. If everything plays out as per plan, M&M’s earnings growth could get a boost. Some
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