Mahindra or M&M Limited is one of the biggest automakers in India.
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.
On a side note, investors who are interested in Mahindra’s vehicle sales by segment may visit this page here – M&M Vehicle Sales Numbers In India.
That said, let’s head out to see the numbers!
Total Domestic Market Share
Let’s first look at Mahindra’s total domestic market share in India which is shown in the chart above for the period from FY16 to FY22.
According to the chart, Mahindra’s total domestic market share in India hovered around 11% prior to FY20 but this figure has declined to only 10.5% in FY22, one of the lowest the company has ever reported.
Mahindra’s total market share in India was 11.4% in FY16 and 9.4% in FY21.
Therefore, Mahindra’s total market share in India has declined by 0.9 ppt in FY22 from FY16 but was 1.1 ppt higher than that of FY21.
Mahindra reported much higher vehicle sales in FY22 from FY21, notably at a 28% year-on-year growth rate.
Mahindra sold 423,143 vehicles in FY22 compared to 330,000 vehicles in FY21 in the domestic market of India, up 28% year on year.
Commercial Vehicle Market Share
While Mahindra’s total domestic market share has slightly declined, its commercial segment market share has remained flat since FY17 and reached 25% as of FY22.
Compared to FY21, Mahindra’s commercial vehicle market share in India has declined by 2.4 ppt year over year.
Mahindra sold more than 177,000 commercial vehicles in FY22 compared to 156,000 reported in FY21, an increase of 13% year over year.
Breakdown Of Commercial Vehicle Market Share
Mahindra’s commercial vehicles market share is broken down into 3 major segments and are LCV Goods Total, MHCV Goods, and CV Passenger.
Of all commercial vehicle segments, Mahindra’s LCV Goods Total commands the highest market share in India among all commercial segments, well above 40% prior to FY21.
Over the last 5 years, the company’s market share in the LCV segment has been been on a decline.
For example, LCV Goods Total’s market share was 47% in FY17 but this figure had declined to only 38% as of FY22, representing nearly a 10 ppt drop over the 6-year period.
Mahindra delivered slightly more than 170,000 commercial vehicles within the LCV segment in FY22, representing a year-over-year increase of 13%.
In other commercial vehicle segments, Mahindra had a market share of less than 5% in both the MHCV Goods and CV Passenger segments.
Mahindra’s MHCV Goods market share has declined slightly in the last 6 years but the CV Passenger segment market share has plunged the most, particularly in recent years.
As of FY22, Mahindra’s market share in the MHCV segment totaled only 2% compared to the 2.6% reported in FY17
Similarly, Mahindra’s CV Passenger market share in India was almost 5% back in FY17 but this figure has plunged to only 0.7% as of FY22.
COVID-19 had nearly destroyed Mahindra’s CV Passenger segment in India when only 101 vehicles under this segment were sold in FY21 and 141 vehicle deliveries were reported in FY22.
Passenger Vehicle Market Share
Similarly, Mahindra’s passenger vehicle segment total market share also has been on a decline as seen in the chart above.
In 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.
Fortunately, Mahindra’s passenger vehicle market share in India rebounded in FY22, notably to 7.4%, representing a 1.6 ppt increase on a year-on-year basis.
In FY22, Mahindra delivered 226,000 passenger vehicles compared to 157,000 units in FY21, about 44% higher than a year ago.
In addition, Mahindra’s passenger vehicle sales in FY22 grew much faster than the industry volume growth, which came in at only 13% compared to the firm’s reported growth rate of 44% for the same fiscal year.
Breakdown Of Passenger Vehicle Market Share
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 in India, reportedly above 20% prior to FY21.
However, the company’s utility vehicle market share has been declining and reached only 15% in FY22, roughly in line with that of the previous fiscal year.
Similarly, Mahindra’s MPV or van segment market share also has been on a decline and clocked 1.9% in FY22, slightly above the 1.5% reported in FY21.
Mahindra’s passenger car market share was 0.0% in FY22 as the company sold only 59 units in the entire year in FY22, a decline of more than 90% from FY20.
In short, Mahindra’s passenger vehicle market share has been the worst performer among all other segments as the market share has been on a decline for all passenger vehicle segments since FY14.
3 Wheeler Market Share
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% as of FY22, driven primarily by the COVID disruption and possibly supply chain issues.
Mahindra sold 20,000 3-wheelers in FY22, an increase of 19% from FY21.
Mahindra’s 3-wheeler sales growth in FY22 was roughly in line with the industry volume growth, reportedly at 19% for the same fiscal year.
Nevertheless, Mahindra has rolled out several 3-wheelers in recent years, including several electric versions, hoping to regain the market share.
According to M&M, the company had a market share of a massive 73.4% for electric 3-wheeler in India as of FY22, which was more than the market share of any other company.
Tractor Market Share
Of all vehicle segment market share, Mahindra’s domestic tractor sales in India have been the only one that has remained roughly unchanged over the years.
As of FY22, Mahindra’s market share for tractors in India totaled 40%, up roughly 2ppt from FY21.
According to the FY22 annual report, Mahindra has continued to remain the number 1 leader in India in the farm equipment sector at a 40% market share.
Moreover, Mahindra has retained its market leadership position in the farm equipment sector in India for the 39th consecutive year as of FY22.
That said, Mahindra sold nearly 337,000 tractors in India compared to 344,000 units sold in the prior year, a decrease of about 2% year-on-year.
In the same fiscal year, Mahindra exported nearly 18,000 tractors compared to only 11,000 tractors exported in FY21, representing a growth rate of 64% year on year.
On a cumulative basis (domestic + export), Mahindra’s tractor sales came in at 355,000 in FY22, roughly in line with that of FY21.
In conclusion, Mahindra’s total market share for all vehicles in India topped 10.5% as of FY22.
Mahindra is a leader in the farm equipment sector in India at 40% of the market share as of FY22.
Moreover, Mahindra’s total market share for commercial vehicles in India topped 25% in FY22.
On the other hand, Mahindra has only 7.5% of the market share in India for passenger vehicles in FY22.
For 3-wheeler, Mahindra’s market share in India for this segment of vehicles came in at only 8% as of FY22.
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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