Homegrown auto major Mahindra & Mahindra's investment in technology and product development has risen over 16-fold in ten years to touch Rs 1,938 crore in 2015-16.
The company, which is betting big on innovation and aims to be among the top 50 'Most Admired' brands in the world by 2021, also filed 173 patents in 2015-16.
"Our investment in technology and product development has grown from Rs 115 crore in FY 2005-06 to Rs 1,938 crore in FY 2015-16," Mahindra & Mahindra said in its annual report for 2015-16.
"We filed 173 patents in FY16, compared to 156 in the previous year," it said adding its efforts towards technology development and generating IPR have been recently recognised with three prestigious national awards.
It further said: "Going forward, we will continue to enhance our technology and product development capability by leveraging the neural network with MRV (Mahindra Research Valley) in Chennai and our partners across the globe."
The MRV facility has been the birthplace of automotive products like XUV500, TUV300, KUV100 and the new-age tractors Arjun NOVO and Mahindra YUVO.
"MRV helps deliver a competitive edge through synergies in technology development, indigenous design, shortened product development cycles and enhanced people capabilities," it said.
Mahindra North American Technical Centre (MNATC) is helping the company leverage the mature automotive development ecosystem in USA.
"Synergies with SYMC (SsangYong Motor Company) in Korea and our proposed investment in Pininfarina will further help enhance our design and development capabilities," the company said.
M&M said: "With the recently launched TRRINGO digital platform, we have entered into the farm equipment rental services, using new age technology and digitisation. Through TRRINGO, our endeavour is to make tractors and implements more accessible to the small and marginal farmers."
On the future of the automotive industry, M&M said growing concerns over air pollution, road safety, sustainability and urban congestion, among consumers and society at large will have an impact on regulations and policies for motor vehicles and urban development.
"These will also impact ownership patterns and will have a significant impact on the future of the automotive industry," the company added.
It, however, said going forward, the auto industry is expected to show positive growth across all segments on back of healthy economic outlook, finance penetration, investment in roads, infrastructure and new launches by OEMs (original equipment manufacturers).
"In the financial year 2016-17, automotive industry growth is likely to be driven by economic growth, increased investment in infrastructure, a normal monsoon driving positive sentiment in rural economy, and an overall improvement in consumer confidence," M&M said.
The mid-term outlook for the Indian auto industry is very
positive. Society of Indian Automobile Manufacturers (SIAM) forecasts the potential size of the Indian vehicle market by the Financial Year 2019-20 to be as large as 5.7 million vehicles from the current size of 3.2 million.
"This is a growth rate of 12 per cent CAGR," it said, adding that the cost of ownership of vehicle may see marginal rise due to an increase in fuel and commodity prices although the interest rates may soften marginally from current levels.
M&M said in order to sustain growth, it is pursuing several strategic initiatives in all key areas of business.
"The key elements of strategy include strengthening the product portfolio, refresh and update existing products and strengthen research and development and technological capabilities," it said.
Further, the company said it is also pursuing expansion in overseas markets, while keeping establishment of channel and building brand in key focus markets as priorities.
M&M also said with increasing concerns over global warming and the need for sustainable mobility, it continues to focus and invest in development of alternate fuel technologies and solutions especially electric vehicles.
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Source: Mahindra Special Services Group.
