Mahindra & Mahindra aims to maintain its leadership position in the SUV segment by ramping up production and reducing waiting periods. The company’s group CFO, Manoj Bhat, stated that there is a huge demand for its products, as shown by its order backlog of 2.92 lakh units for sports utility vehicles (SUV). Bhat added that the company plans to increase production capacity by the end of the year in order to cater to the growing demand.
The SUV segment is now the largest in the domestic passenger vehicle industry, accounting for 47% of the overall sales in the PV segment in May. Mahindra & Mahindra faces competition from Maruti Suzuki, Tata Motors, and Hyundai in the SUV segment, but the company retains the leading position in terms of SUV revenue market share for the last fiscal year.
For the 2022-23 fiscal year, Mahindra & Mahindra posted its highest-ever annual profit of Rs 10,282 crore. The company has revised its capital expenditure outlay for the FY22-FY24 cycle to Rs 15,900 crore from Rs 15,075 crore announced earlier.
Bhat noted that the company feels confident about its product portfolio and remains committed to achieving its objective of being the leader in the SUV segment this fiscal year. Despite robust demand with no signs of a slowdown, the company plans to improve its utilization of existing production capacity while ramping up production capability to scale it up to 49,000 units per month in FY24 from 39,000 units per month in FY23.
