M&M Ascends to India's No. 2 Auto Spot via Profit-Focused Strategy
Overview
Mahindra & Mahindra has claimed the second position in India's passenger vehicle market, shifting focus from aggressive volume gains to profitable growth and capital discipline. The company is evaluating new plant locations to boost utility vehicle capacity past one million units by FY27.
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Strategic Ascent
Mahindra & Mahindra (M&M) has secured the second spot in India's fiercely competitive passenger vehicle market. The automotive giant's rise is attributed to a deliberate strategy emphasizing profitable growth, capital discipline, and operating leverage, rather than solely chasing higher sales volumes. This shift marks a significant moment, moving M&M past rivals like Hyundai.
Rajesh Jejurikar, executive director and CEO of M&M's automotive and farm equipment divisions, stated that reaching the number two position was not the primary objective but a natural consequence of the company's operational focus. "The objective is to deliver growth, market share and margins together," Jejurikar commented. "Volume growth without returns is not sustainable."
Capacity Expansion Plans
Looking ahead, M&M is actively assessing multiple land parcels across various Indian states for a new greenfield manufacturing plant. This expansion is crucial for increasing its utility vehicle production capacity, aiming to surpass the one million unit mark by fiscal year 2027. The search for suitable sites is not confined to established automotive manufacturing hubs, signaling a broader strategic outlook.
