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 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.
Let’s take a look!
Mahindra’s automotive sector 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 vehicles 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 is shown in the chart above for the period from FY18 to FY22.
Mahindra’s total vehicles sales are made up of domestic and export sales.
On a consolidated basis, the firm’s vehicle sales have been sliding since FY20 due primarily to the COVID-19 pandemic.
The figures hit a record low at about 330,000 units in 3Q FY21 but have recovered significantly in FY22.
As of 2Q FY22, Mahindra’s total vehicle sales clocked 420,000 units, which represents a 20% year-on-year growth.
While vehicle volumes have recovered considerably in FY22, the figures are still down significantly compared to those reported in FY19, which means Mahindra’s vehicle sales are still below that of the pre-COVID periods.
Back in FY19, Mahindra’s vehicle sales reached as much as 610,000 units on a TTM basis, about 30% higher than its latest figure.
Total Vehicle Sales Breakdown
Mahindra’s total vehicle sales are broken down into 2 major segments and they are domestic and export sales.
As shown in the chart, domestic sales make up more than 90% of the company’s total vehicle sales.
As of 2Q FY22, total domestic vehicle sales reached more than 390,000 units on a TTM basis and were a record high since FY21.
On the other hand, total export sales reached only 26,000 units as of 2Q FY22, but represent a year-over-year growth rate of more than 40%.
Despite the recovery in FY22, Mahindra’s both domestic and export volumes are still down significantly compared to their historical highs.
For example, Mahindra used to ship more than half a million vehicles in the domestic market back in FY19 while export sales clocked nearly 40,000 units.
In short, Mahindra’s domestic and export sales have both declined over the 5-year period.
Domestic Vehicle Sales Breakdown
Let’s look at only Mahindra’s domestic vehicle sales which are broken down into passenger and commercial segments.
The company’s commercial vehicle sector sales volume was slightly higher than its passenger counterpart prior to FY22.
However, the commercial vehicle segment has declined the most in FY21 and has remained flat even in FY22.
On a year-over-year basis, Mahindra’s commercial vehicle sales grew 0% in 2Q FY22 and clocked 190,000 units in both quarters in FY21 and FY22, thereby leading to a 0% growth rate.
In contrast, Mahindra’s passenger segment grew to 200,000 units on a TTM basis as of 2Q FY22 compared to only 130,000 units reported a year ago, representing a year-on-year growth rate of nearly 50%.
In short, Mahindra’s passenger vehicle segment recovered at a much faster pace than its commercial counterpart in FY22.
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’s cars/vans 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.
Back to the chart, Mahindra’s utility vehicles made up the bulk of the total passenger vehicle volume, notably at nearly 100% as of FY22 2Q.
As of Q2 FY22, utility vehicle sales reached 197,000 units on a TTM basis, representing a 50% year-on-year growth rate.
In contrast, Mahindra’s car/vans sales came in at only 2,000 units as of 2Q FY22, which was about the same as that reported in the same quarter a year ago.
In FY22, Mahindra’s utility vehicle volume has recovered significantly in Q2 and was closing in the pre-COVID levels.
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 of fewer than 3.5 tonnes.
As of FY22 2Q, this segment contributed about 157,000 vehicles on a TTM basis while the LCV greater than 3.5T contributed only 6,000 vehicles during the same quarter.
On the other hand, Mahindra’s 3 wheelers (inclusive of electric version) sales clocked 30,000 units as of 2Q FY22 on a TTM basis, about 9% lower compared to the same quarter a year ago.
Overall, Mahindra’s commercial vehicle sales have declined in all vehicle segments on a long-term basis, 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
On a consolidated basis, Mahindra’s total tractor sales reached more than 380,000 units on a TTM basis as of Q2 FY22, which was 26% higher than the figure reported a year ago.
Additionally, Mahindra’s tractor sales also have been on a tear, reaching a record high consecutively in 2 quarters in FY22.
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 have dipped only slightly in 1Q FY21 and have since surged to multiple new highs.
In FY22, Mahindra’s total tractor sales have 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 96% of total sales as of Q2 FY22.
In terms of tractor sales figures, Mahindra’s domestic market contributed 370,000 units on a TTM basis in FY22 2Q compared to only 15,000 units for the export market.
Year over year, Mahindra’s domestic tractor sales grew 25% while the export tractor sales grew nearly 90% in Fy22 Q2.
Also, Mahindra’s domestic tractor sales grew the most since FY21, and the sales figures reported in FY22 had even exceeded that of the pre-COVID periods.
In short, Mahindra’s tractor sales were only slightly trailing that of the automotive sector on a TTM basis as of 2Q FY22.
Mahindra’s total vehicle sales came in at 419,000 units as of 2Q Fy22 while total tractor sales clocked 384,000 units on a TTM basis in the same quarter.
Mahindra’s tractor sales recovered the most in FY22 compared to its automotive counterpart and the latest figures had even exceeded the pre-COVID levels.
In contrast, Mahindra’s automotive sector sales were still lower as of Fy22 Q2 compared to their historical highs reported in Fy19 despite recovering considerably in Fy22.
Mahindra’s passenger vehicle sales grew at a much faster pace than commercial vehicles in FY22 and they were almost at the same levels as of Q2 FY22.
All commercial vehicles sales in FY22 have remained flat year over year while utility vehicles in the passenger segment grew the most.
As of Fy22 Q2, Mahindra’s utility vehicle sales came at nearly 200,000 units on a TTM basis and were much higher than all commercial vehicle segments.
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.
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