Exciting new Mahindra vehicles
As part of its rise philosophy, Mahindra & Mahindra is developing new, exciting CVs.
As part of its rise philosophy, Mahindra & Mahindra is developing new, exciting CVs.
Reporting FY202021 Q4 consolidated revenue of Rs.21,456 crore, up 32 per cent, and a consolidated Q4 PAT before EI at Rs.1,834 crore, up 170 per cent, Mahindra & Mahindra Ltd. (M&M) will introduce 23 new products in the passenger and commercial vehicle markets, along with 37 tractor types by 2026. Reporting a generation of operating cash of Rs.10,022 crore in FY2020-21, up 119 per cent, the 23 new products that the automaker will introduce by 2026 will include nine SUVs and 14 CVs. Of these, six SUVs and six commercial vehicles will be electrically powered. This would
very likely include the exciting little electric car Atom. It will account for one of the five new launches in the last mile mobility segment. The other would be the next generation Treo electric three-wheeler range, claims an industry source. He adds that the yet another exciting introduction would be the electric pedalassisted ‘pod’ UDO. The UDO was first shown at the 2018 Auto Expo. While the next generation Treo platform, springing passenger and cargo variants, will be engineered to help its manufacturer make strides in new and existing export markets, the domestic market is also expected to have grown quite some by the time of the launch. Estimated to be a little over 1.5 million units, the electric three wheeler market is highly fragmented. The amount of cargo three wheelers in the market are estimated to be 1,10,000 units per year strong.
Reporting an increase in Farm Equipment Sector (FES) Revenue by 60 per cent in Q4 of FY2020-21, and an increase in Auto Sector (AS) revenue by 43 per cent in Q4 of FY2020-21, M&M, apart from the next generation Treo, will introduce an electric version of the Jeeto minitruck, the source informs. He draws attention to a recent announcement concerning M&M Board’s approval to consolidate Mahindra Electric Mobility and the subsequent categorisation of electric vehicle operations into two focused verticals - Last Mile Mobility (LMM) and Electric Vehicle Tech Centre. Reporting a 36 per cent increase in consolidated operating profit at Rs.4,610 crore, the company, informs the source, is developing a new range of urban and highly modular pick-up truck platform in the three and 3.5-tonne space. Announcing an improvement in operating margin to 14.7 per cent in comparison to an operating margin to 13.6 per cent in the corresponding quarter the year prior, the automaker is expected introduce a number of variants based on the respective platform. These will be powered by diesel, petrol, CNG and electric powertrains, claims the source. Facing production constraints due to semiconductor shortage, M&M, experiencing robust demand for products in Q4 FY 202021, will also launch new Bolero range of pick-up trucks. These would be of the single cab and double cab variety. They will come in new and classic guise, and will be powered by a range of technologies, the source mentions.
Focusing on cost optimsation and reduction in fixed expenses, the AS is also said to be developing a new LCV platform to complement its existing range of LCVs like the Jayo. The FES at the other end is set to launch 37 tractor models across four platforms and four geographies by FY2024-25. These will start in the subcompact (20 to 25 hp) range and rise to include large utility models in the 45 to 70 hp power range. Confident that the K2 project in collaboration with Mitsubishi will bear fruit in the next three to four years and help the company to further strengthen its market position in the global markets as well as the domestic market, M&M, putting up a robust performance in the tractor space in FY2020-21, focused on supply chain and commodity challenges as far as the FES was concerned. Lining up capital expenditure of Rs.12,000 crore for introduce new models, upgrade existing one and offer new variant over the next five years, the automaker indulged in much cost management in FY202021. Rolling out the ‘people first’ strategy involving the safety of its workers and executives, it has lined up another Rs.5,000 crore for investments in group companies.
Streamlining capital allocation and achieving a robust operating cashflow in a year impacted by the pandemic, M&M is particularly emphasizing on the development of digital platforms. It is doing so across its core businesses. Eyeing a bold, aggressive growth trajectory, the company is looking at further increasing its profitability.