Reporting FY2020-21 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 Mahindra 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 new Mahindra SUVs and 14 CVs. Of these, new Mahindra 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 pedal-assisted ‘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.
The next generation Mahindra Treo electric three-wheeler range is expected to help its manufacturer to further strengthen its domestic market position and pursue global ambitions.
The highlight of Mahindra’s aggressive 23 product introduction strategy will be the next generation Bolero range in single cab and dual cab configuration with a host of new technologies.
A range of urban pick-up trucks is expected to complement the next generation Bolero range.
Mahindra is set to launch 37 tractor models across four platforms and four geographies by FY2024-25.
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 mini-truck, 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 semi-conductor shortage, M&M, experiencing robust demand for products in Q4 FY 2020-21, 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 optimisation 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 sub-compact (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 introducing new models, upgrade existing one, and offer new variants over the next five years, the automaker indulged in much cost management in FY2020-21. 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 cash flow 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.
