Mahindra's truck and bus division recovers with rising revenues and market share, aiming for significant growth amid industry optimism.
31 Jul 2024 | 3833 Views | By Shahkar Abidi
Mahindra & Mahindra’s truck and bus division, once a laggard in the industry, is staging a remarkable comeback. After narrowly escaping the Mahindra Group’s financial scrapheap a few years ago, the division is now in the middle of a revival, with revenues touching Rs 3500 crore and a market share ...
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Mahindra & Mahindra’s truck and bus division, once a laggard in the industry, is staging a remarkable comeback. After narrowly escaping the Mahindra Group’s financial scrapheap a few years ago, the division is now in the middle of a revival, with revenues touching Rs 3500 crore and a market share of around 3%.
Executives at the company are bullish about future prospects. Rajesh Jejurikar, executive director & CEO (auto and farm sector), predicts a market share surge to 8% in the coming years, driven by a buoyant industry and the company’s own strategic overhauls. "The industry has a very good level of profit pool. So, if we are at that level, we must make a lot of money" Jejurikar remarked, " the company doesn't lose money"
The division’s journey has been fraught with challenges. The pandemic, particularly its impact on Maharashtra, where Mahindra’s truck plant is located, dealt a severe blow. Component shortages, especially for engines, forced the company to prioritize its product line, leading to a market share slump from 5-8% to a low of 2.5%.
However, the worst is behind the company. Over the past two years, Mahindra has embarked on a concerted effort to rebuild its business. This has involved plugging product gaps and enhancing customer satisfaction. "We have put a lot of focus to get the business back on track", Jejurikar continued, adding that the strategy is already bearing fruit with rising sales and an expanding dealer network.
Whether Mahindra can sustain this momentum and achieve its ambitious target remains to be seen. But for now, the company’s truck division is clearly shifting gears.