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- By Divanshi Sharma
- Thu, 16 May 2024 06:02 PM (IST)
- Source:JND
Mahindra & Mahindra, a leading automobile manufacturer in India, has announced plans to invest a substantial amount of Rs 12,000 crores which is equivalent to $1.44 billion, into its electric vehicles division. This move comes as the company exceeded profit expectations in the fourth quarter, driven by steady sales of its SUVs.
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As part of its strategy, Mahindra will sell certain assets linked to its electric car business to Mahindra Electric Automobile, its electric vehicle unit, for Rs 7.96 billion. Currently, Mahindra offers one electric vehicle model, the XUV400 and aims to introduce a new range of electric vehicles by next year. Mahindra's focus on electric vehicles aligns with the growing demand for such environmentally friendly and sustainable transportation options. The company's current vehicle lineup primarily included SUV models like Scorpio, XUV700 and Thar.
In the last quarter, Mahindra witnessed a 27.2 per cent increase in SUV sales compared to the previous year. According to industry reports, utility vehicles including SUVs contributed significantly to passenger vehicle sales in India, with a notable 31 per cent year-on-year growth. Passenger vehicle sales have surged to record levels over the past two fiscal years.
In terms of financial performance, Mahindra reported a 31.6 per cent rise in standalone profit after tax, reaching 20.38 billion rupees ($244.06 million). This figure exceeded analysts' expectations, reflecting the company's strong performance in the market. Additionally, Mahindra's automotive business, which constitutes a major portion of its revenue, recorded an 11.2 per cent increase, totaling Rs 251.09 billion. These financial results surpassed analysts' average projections, indicating Mahindra's resilience and growth trajectory in the automotive sector.
