Homegrown UV major, Mahindra & Mahindra (M&M) is betting on its new UV products to drive sales for the company. According to Rajan Wadhera, president - Automotive Sector, Mahindra & Mahindra, the upcoming compact SUV codenamed S201, the U321 MPV and the second-generation Mahindra Rexton will contribute 13 percent increase in volumes.
According to the company as these offerings will compete in a different segment where it currently does not have any other product, thus helping it garner more volumes. On the investment front the company has earmarked Rs 15,000 crore, with a lions share (Rs 10,000 crore) going towards new product development including UVs, commercial vehicles and tractors.
The company has said that while it does not see major headwinds for the automotive industry, it continues to see tailwinds on the account of rise in rural consumption, retail inflation continuing to be below 5 percent, bank interest rates continuing at the same level (6%), positive monsoon projection and the Indian economy growing at more than 7 percent. While, some speed breakers it sees include increase in commodity prices and liquidity issues in the banking sector. Mahindra, has stated it agrees that it focussing on improving the supply constraints on the back of increase in demand. On the other hand, when it comes to capacity utilisation it sees no major chokepoints.
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