Mahindra & Mahindra clocked the highest-ever Q3 volumes at 176,000 vehicles. This is up 45 percent YoY and most importantly, in the automotive business, it is the SUVs that are driving the volume growth.
In fact, M&M shared that SUV revenue has increased 500 basis points year-on-year. In the company’s domestic business, SUVs accounted for 60 percent of the domestic volume growth. A quick study of the growth drivers through the fiscal indicates that UV revenue market share has been constantly on the uptrend. It has now risen to 20.6 percent from 17.1 percent in Q1 FY2023.
The booking pipeline is another indicator of the strong UV demand. According to M&M, the company now has 266,000 open bookings. If you see the model-wise segregation:
-The XUV 300 and the XUV 400 together have 23000open bookings with a monthly tally of 9,300 bookings every month
-The XUV 700 has a total of 77,000 open bookings with a monthly tally of 9,900 bookings every month
-The Thar (including RWD) has 37,000 open bookings clocking 4,600 bookings every month
-The Bolero including the Neo has 9,000 open bookings and the monthly bookings, in this case, are around 10,400 every month.
-The Scorpio-N is clocking 16,500 bookings every month and has open bookings of 119,000 vehicles.
Incidentally one of the high points of Q3 is the XUV400 becoming the fastest-booked electric SUV in India with 15,000 bookings in just 13 days.
Overall the auto vertical has clocked 320 basis point improvement in the margin indicating better profitability and consistent revenue growth.
