Mahindra & Mahindra aims for strong growth in FY25 with new SUV launches

Mahindra & Mahindra (M&M) has set a goal to maintain mid-to-high teens growth for the fiscal year 2024-25 (FY25). This growth is driven by the launch of the new XUV 3XO and the upcoming Thar 5-door model. The company has retained its leadership in the SUV market, selling over 1.2 lakh units in the April-June quarter of FY25, marking a 24% increase compared to the same period last year.

Rajesh Jejurikar, Executive Director and CEO of M&M’s Auto and Farm Sector, shared the company’s optimistic outlook in a recent earnings call. He highlighted that the ramp-up of the XUV 3XO and the anticipated launch of the Thar 5-door, also known as Thar Roxx, set for August 15, are key to achieving their growth targets.

Since the fiscal year 2020, M&M has significantly increased its SUV production capacity from 19,000 units to 49,000 units by the end of FY24. The company plans to further boost this capacity to 64,000 units per month by the end of FY25. This includes an additional 15,000 units per month, divided among the Thar Roxx 5-door, XUV 3XO, XUV400, and battery electric vehicles (BEVs).

In the June quarter, M&M reported average monthly billings of 41,000 units, with a 10% monthly cancellation rate. The company attributed the slower conversion rate to heatwaves and the transition to new variants like the XUV700 AX5 Select.

Financially, M&M’s net profit decreased by 5% year-on-year to ₹2,613 crore in the first quarter of FY25. However, the revenue from operations saw a 12% increase, reaching ₹27,039 crore.