This article tracks Mahindra & Mahindra Limited or M&M Limited’s automotive sector vehicle sales and farm equipment sector tractor sales.
For your information, Mahindra & Mahindra Limited is one of the largest automakers in India and is a wholly-owned subsidiary of Mahindra Group, a multinational conglomerate company based in Mumbai, India.
Moreover, Mahindra & Mahindra Limited is publicly traded on the Bombay Stock Exchange and the National Stock Exchange of India.
Mahindra produces not only automotive products such as passenger and commercial vehicles but also farm equipment, including tractors and farming machinery.
The company plays an important role in India’s economy by employing hundreds of thousands of people and its product brand names are well-recognized across the country.
In this article, we will take a look at the figures of Mahindra’s automotive sector vehicle sales and farm equipment sector tractor sales which are presented on a trailing 12-month (TTM) basis.
The reason for using the TTM figures is to smooth out the quarterly figures and to see the long-term trend of the company’s vehicle and tractor sales, whether on a rising or falling trend.
On a side note, investors who are interested in Mahindra’s market share by vehicle segment may visit this page here – M&M Market Share In India.
Let’s take a look!
Vehicle Sales Breakdown
Mahindra’s vehicle sales are divided into 2 major categories and they are domestic and export sales as shown in the diagram above.
Domestic vehicle sales are further broken down into commercial and passenger vehicles.
Under the commercial vehicle segment, Mahindra’s vehicle sales consist of light commercial vehicles (LCV), medium and heavy commercial vehicles (MHCV), and 3-wheelers.
3 wheelers include the all-electric version and are a type of small vehicle that is similar to a motorbike but has 3 wheels instead of 2.
On the other hand, Mahindra’s passenger vehicle segment is mainly made up of utility vehicles, cars and vans.
Total Vehicle Sales
Let’s look at Mahindra’s total vehicle sales which are shown in the chart above for the period from FY18 to FY23.
As seen in the prior diagram, Mahindra’s total vehicle sales are made up of domestic and export sales.
On a consolidated basis, the firm’s vehicle sales have been on a rise since FY21 after having a considerable downturn in FY20, driven primarily by the COVID-19 pandemic.
As of 3Q FY23, Mahindra’s total vehicle sales clocked 665,000 units on a TTM basis, which represents a 59% year-on-year growth.
Also, Mahindra’s vehicle sales in FY23 have even exceeded that of the pre-COVID period, illustrating that the company’s automotive sector has not only fully recovered but also been thriving.
Total Vehicle Sales Breakdown
Mahindra’s total vehicle sales are broken down into 2 major segments and they are domestic and export sales.
Domestic sales represent vehicle sales that occur in the domestic market of India while export sales represent vehicles exported out of the country.
As shown in the chart above, domestic sales make up more than 90% of the company’s total vehicle sales while export sales make up less than 10% of total sales.
As of 3Q FY23, Mahindra’s total domestic vehicle sales reached 632,000 units on a TTM basis, a record high since FY18 that contributed to 95% of total sales.
On the other hand, total export sales topped only 34,000 units as of 3Q FY23 on a TTM basis and were 13% higher than a year ago.
Therefore, M&M’s vehicle export sales contributed roughly 5% of sales to total sales in FY23 Q3 on a TTM basis.
In short, Mahindra’s total vehicle sales were mostly made up of domestic vehicle sales, notably at 95% as of Q3 FY23.
Also, Mahindra’s domestic vehicle sales have been solid in FY23 while export sales have only slightly improved.
Domestic Vehicle Sales Breakdown
Let’s look at Mahindra’s domestic vehicle sales which are broken down into passenger and commercial segments.
The company’s commercial vehicle sector sales volume was much higher than its passenger counterpart prior to FY22.
However, Mahindra’s passenger vehicle sales have overtaken that of the commercial segment in FY23 as shown in the chart above.
As of 3Q FY23, M&M’s commercial vehicle sales came in at 296,000 units compared to 335,000 units for passenger vehicles on a TTM basis.
On a year-over-year basis, Mahindra’s commercial vehicle sales grew 60% in 3Q FY23 while passenger vehicle sales grew 65% during the same period.
On a TTM basis, M&M’s passenger vehicle sales were much higher than that of the commercial segment in FY23.
Its passenger vehicle sales in FY23 have even surpassed that of the pre-pandemic period, indicating that the domestic passenger vehicle market may even become the main growth driver for the company going forward.
Passenger Vehicle Sales Breakdown
Mahindra’s passenger vehicle sales are made up of utility vehicles and cars and vans.
Mahindra’s utility vehicles are comprised mainly of SUVs and MUVs.
Some SUV and MUV well-known models include Thar, XUV700, XUV300, Scorpio, Bolero, KUV100, and Marazzo.
On the other hand, Mahindra cars and van’s well-known models are Verito and Logan.
The Verito model now includes an all-electric version which is called the e-Verito.
Aside from the e-Verito, Mahindra also introduced the e2oPlus which is another all-electric sedan.
That said, Mahindra’s utility vehicles made up the bulk of the total passenger vehicle volume, notably at nearly 100% as of FY23 3Q.
As of Q3 FY23, utility vehicle sales reached 333,000 units on a TTM basis, up 66% from a year ago.
In contrast, Mahindra’s car and van sales came in at only 2,500 units as of 3Q FY23 on a TTM basis and were up 25% from a year ago.
In FY23, Mahindra’s utility vehicle sales surged and made up roughly 99% of the company’s passenger vehicle volume in 3Q on a TTM basis.
While utility vehicle sales tumbled during FY20, it had not only recovered in FY23 but also exceeded the pre-COVID results, showing just how resilient this segment had been for M&M.
Commercial Vehicle Sales Breakdown
Mahindra’s commercial vehicles include light commercial vehicles such as pick-up trucks.
Popular brand names in this segment include Jeeto, Jayo, Bolero Maxitruck, Bolero Pickup, etc.
Moreover, Mahindra has recently produced an all-electric version of its cargo van which is called e-Supro.
Mahindra’s 3-wheelers include the Alfa line and also the electric version such as the Treo and e-Alfa.
According to the chart above, Mahindra shipped the majority of its commercial vehicles in the LCV segment fewer than 3.5 tonnes.
As of FY23 3Q, this segment contributed about 236,000 vehicles on a TTM basis while the LCV greater than 3.5T contributed only 8,600 vehicles during the same quarter.
On the other hand, Mahindra’s 3-wheelers (inclusive of the electric version) sales clocked 52,000 units as of 3Q FY23 on a TTM basis, about 78% higher compared to the same quarter a year ago.
Similarly, M&M’s sales of LCV smaller than 3.5 tonnes grew 58% in Q3 FY23 while the sales of LCV greater than 3.5 tonnes grew 38% during the same quarter.
Overall, Mahindra’s commercial vehicle sales have recovered in all vehicle segments as of FY23 in a post-pandemic world, including the popular 3-wheelers.
Farm Equipment Sector
There are only 2 categories under the farm equipment segment and they are domestic and export sales.
Well-known tractor brand names under the domestic category include Mahindra, Swaraj, and Trakstar.
Additionally, Mahindra ships some of its tractors internationally through brand names such as Mahindra, Mitsubishi, and Erkunt.
Total Tractor Sales
Keep in mind that total tractor sales include both domestic and export sales.
On a consolidated basis, Mahindra’s total tractor sales reached more than 391,000 units as of Q3 FY23 on a TTM basis, about 4% higher than the figure reported a year ago.
Additionally, Mahindra’s tractor sales also have been on a tear since FY21.
It looks like the chip shortages and COVID outbreak which has greatly affected the automotive sector have little impact on Mahindra’s farm equipment sector.
Even during the onset of the COVID outbreak which occurred in FY21, Mahindra’s tractor sales dipped only slightly in 1Q FY21 and have since surged to multiple new highs.
In FY23, Mahindra’s total tractor sales exceeded that of the pre-COVID periods and even those reported back in FY19.
After all, people still need to eat no matter what is happening, be it a COVID outbreak or a chip crisis.
Tractor Sales Breakdown
As seen in the chart above, Mahindra sold most of its tractors in the domestic market, notably at 95% of total sales as of Q3 FY23.
In terms of tractor sales figures, Mahindra’s domestic market contributed 372,000 units on a TTM basis in FY23 3Q compared to only 19,000 units for the export market.
Year over year, Mahindra’s domestic tractor sales grew 4% while the export tractor sales grew 19% in FY23 Q3 on a TTM basis.
Also, Mahindra’s domestic tractor sales grew the most since FY21, and the sales figures reported in FY23 had even exceeded that of the pre-COVID periods.
In short, Mahindra’s tractor segment has only slightly lagged behind the automotive segment and may even become a growth driver for the company in the future.
Of all the vehicle shipments, Mahindra’s domestic market contributes to the bulk of the volume, notably at 95% of total sales volume as of 3Q FY23.
In terms of vehicle sales in the domestic market, both passenger and commercial vehicles contribute nearly an equal number to total domestic sales as of FY23.
For the passenger vehicle segment, M&M’s utility vehicle makes up the bulk of the sales volume, at close to 100% of the total passenger vehicle volume as of 3Q FY23.
M&M sold an insignificant number of cars and vans in India, only about 2,500 units as of Q3 FY23 on a TTM basis.
For the commercial vehicle segment, the LCV (Light Commercial Vehicle) smaller than 3.5 tonnes makes up the bulk of the shipment volume in FY23.
As of 3Q FY23, M&M’s LCV sales totaled 236,000 units on a TTM basis, making up about 80% of total commercial vehicle volume.
Also, Mahindra’s 3-wheeler sales have been quite impressive, delivering 52,000 units as of FY23 Q3 on a TTM basis, contributing to 18% of total commercial vehicle volume.
While the farm equipment segment delivered only 391,000 units as of 3Q FY23 on a TTM basis which was only about 60% of the sales volume of the automotive segment, it is still an important business sector that investors should pay attention to.
That said, Mahindra’s tractor sales came entirely from its domestic market, reportedly at 95% of the total volume or 372,000 units as of 3Q FY23 on a TTM basis.
Credits And References
1. All financial data in this article was obtained and referenced from Mahindra’s financial statements available in M&M’s Investor Relation.
The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.
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