M&M expects to grow its SUV business in mid to high teens in FY2025

Mahindra & Mahindra - the country's number one SUV maker in terms of revenues - expects to outpace the market for a third consecutive year in a row and grow its volumes in mid-to high teens in FY2025.

Reviewing the Q3 FY2024 earnings, Rajesh Jejurikar, ED & CEO at Mahindra & Mahindra said the company is witnessing a sustained enquiry and booking momentum for its models with monthly orderbook of 50,000 units are being consistently recorded and he expects the momentum to continue in FY2025 too.

"The industry body SIAM has guided for a passenger vehicle growth of 3-4% in FY-25 and the UV segment growth will be around 10-12%, we expect our SUV segment to grow faster than the market. We will seek to grow by mid-to-high teens in the UV segment next year," said Jejurikar. 

During FY2025, the company is set to launch the facelift of XUV300 and 5-door Thar which is likely to bring in incremental sales next financial year. While the company was non-committal on guiding for future volumes, sources say both the new XUV300 and Thar should bring in an incremental volume of a minimum 5,000 to 8,000 units to the monthly sales of the company.

The average monthly sales which have crossed the 40,000 units mark is set to reach 50,000 units.

Jejurikar informed that the monthly capacity at its plant has been ramped up to 49,000 units a month. 

Not only was Mahindra the number one SUV maker in the country in terms of revenues at the end of December, but it was also the second largest SUV maker in terms of volumes too with increased shares on both metrics. The company’s revenue market share in SUVs increased to 21% at the end of December.

Open bookings reach 2.26 lakh units

Mahindra & Mahindra was sitting on a cumulative booking of 2.26 lakh units at the end of Q3 FY2024. The company is sitting on an open booking of over 1 lakh Scorpio N (including Classic); 35,000 units of XUV700; 71,000 units of Thar; 10,000 units of Bolero (including NEO) and about 8,800 units of XUV300 and XUV400.

The company informed media that the average monthly bookings continue to be in the range of 50000 per month, with the average delivery of about 40000 units, The cancellations in Nov’23-Jan’24 increased a wee bit to 10% but normalised again in January to 8%.

The automotive business, including small commercial vehicles and pickup trucks, grew by 20% to 2.11 lakh units. The utility vehicle sales stood at 1.18 lakh units in the same period.