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Mahindra’s Commercial And Passenger Vehicle Market Share

Mahindra Genio 2.2 CRDe 4×4. Flickr Image.

Mahindra or M&M Limited is one of the biggest automakers in India.

Some of the firm’s largest rivals include Tata Motors and Maruti Suzuki.

While Mahindra is publicly traded on the BSE and NSE, it is actually a wholly-owned subsidiary of the Mahindra Group.

Mahindra is particularly well-known for its commercial vehicles and tractors in India.

In addition, Mahindra has also been gaining ground in the passenger vehicle market, especially in the utility vehicle market.

All told, in this article, we will look specifically at Mahindra’s market share in the domestic market of India.

Aside from the total market share, we also will look at the market share breakdown by segment, including the commercial and passenger vehicle segment.

Since Mahindra also has sizable tractor sales in India, the market share of the firm’s farm equipment sector will also be looked upon in this article.

That said, let’s head out to the numbers!

Total Domestic Market Share

Mahindra's domestic market share

Mahindra’s domestic market share

* Domestic market share data is obtained from M&M’s annual report.
* According to M&M, domestic market share data is calculated based on the the company’s sales numbers with respect to the total industry volume.
* M&M’s fiscal year begins on April 1 and ends on March 31.

Let’s first look at Mahindra’s total domestic market share which is shown in the chart above for the period from FY16 to FY21.

According to the chart, Mahindra’s total domestic market share hovered around 11% prior to FY20 but this figure has declined to only 9.4% in FY21, one of the lowest the company has ever reported.

In FY20, Mahindra’s total domestic market share was 10.8%.

Therefore, Mahindra’s total domestic market share has declined by 1.4 ppt in FY21, driven primarily by lower domestic vehicle sales compared to fiscal 2020.

Mahindra sold only 330,000 vehicles in the domestic market of India in FY21, a decline of about 26% compared to FY20.

Commercial Vehicle Market Share

Mahindra's commercial vehicle market share

Mahindra’s commercial vehicle market share

* Commercial vehicle market share data is obtained from M&M’s annual report.
* According to M&M, commercial vehicle market share data is calculated based on the the company’s commercial vehicle sales numbers with respect to the total commercial vehicle industry volume.
* M&M’s fiscal year begins on April 1 and ends on March 31.

While Mahindra’s total domestic market share has declined, its commercial segment market share has actually increased since FY17 and reached as much as 27.5% as of FY21.

Compared to FY20, Mahindra’s commercial vehicle market share has declined by only 0.2 ppt.

Mahindra sold more than 150,000 commercial vehicles in FY21, a decline of roughly 22% from the prior year.

Breakdown Of Commercial Vehicle Market Share

Mahindra's commercial vehicle market share breakdown

Mahindra’s commercial vehicle market share breakdown

* Breakdown of commercial vehicle market share data is obtained from M&M’s annual report.
* M&M’s fiscal year begins on April 1 and ends on March 31.

Mahindra’s commercial vehicles market share is broken down into 3 major segments and they are LCV Goods Total, MHCV Goods and CV Passenger.

Of all commercial vehicle segments, Mahindra’s LCV Goods Total commands the highest market share, notably at more than 40% prior to FY21.

Over the last 5 years, the company’s market share in the LCV Goods Total has been been on a decline.

In this aspect, LCV Goods Total’s market share was 47% in FY17 but had declined to only 38.6% as of FY21.

Mahindra delivered only slightly more than 150,000 vehicles under the LCV Goods Total segment in FY21, representing a year-over-year decline of 20%.

Mahindra has a market share of less than 5% in both the MHCV Goods and CV Passenger segments.

Mahindra’s MHCV Goods market share has remained roughly flat in the last 5 years but the CV Passenger segment marker share has plunged the most, particularly in FY21.

Mahindra’s CV Passenger market share was almost 5% back in FY17 but this figure has plunged to only 0.5% as of FY21.

The COVID-19 had nearly destroyed Mahindra’s CV Passenger segment when only 101 vehicles under this segment were sold in FY21.

Passenger Vehicle Market Share

Mahindra's passenger vehicle market share

Mahindra’s passenger vehicle market share

* Passenger vehicle market share data is obtained from M&M’s annual report.
* According to M&M, passenger vehicle market share data is calculated based on the the company’s passenger vehicle sales numbers with respect to the total passenger vehicle indsutry volume.
* M&M’s fiscal year begins on April 1 and ends on March 31.

Similarly, Mahindra’s passenger vehicle segment total market share also has been on a decline as seen in the chart above.

As of FY21, the firm’s passenger vehicle market share clocked 5.8%, the lowest number the company has ever reported in the last 6 years.

The declining market share in Mahindra’s passenger vehicle segment has been largely driven by lower vehicle sales.

For example, Mahindra delivered slightly above 150,000 passenger vehicles in FY21, a 16% lower compared to the previous fiscal year.

In contrast, India’s passenger vehicle segment industry volume declined only 2.2% in FY21 from the previous fiscal year, a far smaller number compared to Mahindra’s 16% decline.

Breakdown Of Passenger Vehicle Market Share

Mahindra's passenger vehicle market share breakdown

Mahindra’s passenger vehicle market share breakdown

* Breakdown of passenger vehicle market share data is obtained from M&M’s annual report.
* M&M’s fiscal year begins on April 1 and ends on March 31.

Mahindra’s passenger vehicle market share is broken down into 3 segments and they are utility vehicles, MPV and passenger cars.

Of all passenger vehicle segments, Mahindra’s utility vehicle segment commands the highest market share, notably above 20% prior to FY21.

However, the utility vehicle market share has been declining and reached only 15% in FY21, a year-on-year decline of 5 ppt from the previous fiscal year.

Similarly, Mahindra’s MPV or van segment market share also has been on a decline and clocked 1.5% in FY21, the lowest figure the company has ever reported.

Mahindra’s passenger car market share was 0.0% in FY21 as the company sold only 9 units in the entire year in FY21, a decline of 99% from the prior fiscal year.

In short, Mahindra’s passenger vehicle market share has been performing the worst among all other segments and was worsened by the COVID outbreak in FY21.

3 Wheeler Market Share

Mahindra's 3 wheeler market share

Mahindra’s 3 wheeler market share

* 3W market share data is obtained from M&M’s annual report.
* According to M&M, 3W market share data is calculated based on the the company’s 3W sales numbers with respect to the total industry volume.
* M&M’s fiscal year begins on April 1 and ends on March 31.

According to the chart above, Mahindra has only about 10% market share in the 3 wheeler market in India.

However, this figure has plunged to less than 8% in FY21, driven primarily by the COVID disruption.

Mahindra sold only 17,000 3 wheelers in FY21, a plunge of 70% from the prior fiscal year.

While the 3 wheeler industry volume also has plunged significantly in FY21, it was not as much as Mahindra’s figures.

Nevertheless, Mahindra has rolled out several 3 wheelers in recent years, including several electric versions, hoping to regain the market share.

Domestic Tractor Market Share

Mahindra's domestic tractor market share

Mahindra’s domestic tractor market share

* Domestic tractor market share data is obtained from M&M’s annual report.
* According to M&M, domestic tractor market share data is calculated based on the the company’s domestic tractor sales numbers with respect to the total industry volume.
* M&M’s fiscal year begins on April 1 and ends on March 31.

Of all vehicle segment market share, Mahindra’s domestic tractor sales have been the only one that has remained roughly unchanged.

However, Mahindra’s domestic tractor market share still declined slightly by 2 ppt to 38% in FY21, the lowest figure the company has ever seen in the last 8 years.

Despite the decline in FY21, Mahindra has continued to remain the number 1 leader in India in the farm equipment sector at a 38% market share.

In FY21, Mahindra sold nearly 350,000 tractors, an 18% year-on-year growth from the prior year.

Therefore, the tractor is the only sector that sees a double-digit year-over-year sales growth in FY21.

Conclusion

Of all the market share data, we can see that Mahindra is a leader in several vehicle segments such as the commercial vehicle and farm equipment sectors.

That said, Mahindra has a 28% and 38% market share in the domestic commercial vehicle and tractor, respectively.

On the other hand, Mahindra has less than 10% market share in the passenger vehicle and 3 wheeler segments.

Of all vehicle segments, Mahindra’s total domestic market share has gone slightly lower in FY21 to 9.4%.

At this level of market share, Mahindra is a formidable player in the automotive industry in India.

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.

2. Featured images in this article are used under creative commons licenses and sourced from the following websites: Mahindra Genio 2.2 CRDe 4×4 and Mahindra Moto GP bike.

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Disclosure

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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