Mahindra & Mahindra (M&M) had predicted a growth in mid-teens for the current fiscal for the passenger vehicle segment. But the growth has been at 19% so far till August. Speaking to Swaraj Baggonkaron the sidelines of the 65th Siam annual convention, Nalinikanth Gollagunta, CEO, automotive division, said that the GST rate cut has triggered a very positive buyer sentiment. Excerpts:
Has there been an increase in bookings and enquiries?
From walk-ins and enquiries perspectives, we are seeing a lot of excitement but it will be a few days to gauge the actual action on the ground.
How are you placed on the rare earth magnets?
This is an area of focus for us and we have taken several de-risking measures. We are covered for this quarter and next quarter. For the fourth quarter, there are a couple components which we have kept on a watchlist while actively working on them.
Will the production be increased to meet higher demand post the GST cut?
Production capacity is not easy to scale up in weeks or months.
Do you see demand for premium cars?
Yes, within a given portfolio of a model, there could be higher traction for the higher version.
What about exports of the battery electric vehicles?
The BEVs have been designed for the world markets. While South Africa and Australia are core markets and we will probably see them in some other parts also in due course. For instance, the UK is a focus market to go in 18-24 months.
Have you revised your growth projection?
We had said we will do a mid to high teen growth for the year. In the first five months we have done 19% growth. With the GST cut we are hoping to continue on the same trajectory and stay with the projection.
How have you managed to address the issue of E20?
We have issued an advisory to all our customers. All our vehicles are safe to be driven on E20 and E10, so, the customers don’t have to worry about per se from the warranty perspective, we will honour all warranty commitments. April 1, 2023 is when we calibrated for E10. April 1, 2025 the vehicles were calibrated for E20.