Inage Credits - News18
Mahindra & Mahindra (M&M) has set an ambitious goal to sustain mid-to-high teens growth for the fiscal year 2024-25 (FY25), buoyed by the success of its newly launched XUV 3XO and the upcoming Thar 5-door, also known as Thar Roxx. The Indian automotive giant retained its dominance in the SUV sector, achieving a 24 per cent year-on-year (YoY) increase in SUV sales during the April-June quarter (Q1FY25), with over 120,000 units sold.
The Scorpio led the pack with the highest open bookings, totalling 58,000, followed by the XUV 3XO with 55,000 bookings, the Thar with 42,000, the XUV700 with 13,000, and the Bolero with 8,000.
Rajesh Jejurikar, Executive Director and CEO of M&M’s Auto and Farm Sector outlined the company’s growth strategy during an earnings conference call. He expressed confidence in achieving mid-to-high teens growth for FY25, driven by the ramp-up of the XUV 3XO and the forthcoming launch of the Thar Roxx on August 15. “Starting the year with a 24 per cent growth, we are optimistic about finishing within our target range for the fiscal year,” Jejurikar stated.
In terms of production, M&M has significantly ramped up its SUV capacity from 19,000 units in FY20 to 49,000 units by the end of FY24. The company plans to reach a monthly production capacity of 64,000 units by FY25. This includes an additional 15,000 units per month for new models and 10,000 units from battery electric vehicles (BEVs).
Although M&M’s net profit fell by 5 per cent to Rs 2,613 crore in Q1FY25, the company experienced a 12 per cent increase in revenue from operations, which reached Rs 27,039 crore. The company attributed the slow conversion of average monthly billings to heatwaves and the transition of variants to the XUV700 AX5 Select.