M&M eyeing global expansion, diversifying ops to boost revenue growth

M&M's product line has reached a stage of maturity where we can go and compete around the world, a company official said

One of the country's major automakers, Mahindra & Mahindra (M&M), aims to boost its revenue by expanding into global markets and diversifying its operations, according to a report by The Economic Times. The company plans to focus on the international market with its newer products such as the XUV700 and Scorpio-N, along with its upcoming range of electric vehicles. M&M has a significant share in the Indian sports utility vehicle (SUV) market.

The company aims to triple its revenue from international operations within the next two years and continue to grow it further, as reported by a senior official in The Economic Times. Rajesh Jejurikar, Executive Director and Chief Executive of Automation and Farm Equipment at M&M, stated, "Our aim is to scale international operations revenue by 2.5 times by FY26 and further onward." He added that M&M is developing products that meet global standards and can compete with the best in the world. Jejurikar also said the company's product line has reached a level of maturity that enables it to compete globally.

 

Currently, Mahindra exports its vehicles to 30 countries, including those in South Asia, the Middle East, Africa, South Africa, Australia, New Zealand, and some left-hand drive markets in South America. Recently, M&M introduced its XUV700 and Scorpio-N models in Australia and New Zealand, where the company already sells a pick-up version of the Scorpio. Additionally, M&M launched the XUV700 and Scorpio-N in South Africa last year. "We are the fastest-growing brand in South Africa, and we have an assembly base there," Jejurikar said.

While the company has introduced the XUV700 and Scorpio-N as its initial products for the global market, Mahindra unveiled a concept pick-up truck in August, specifically developed with global markets in mind.

A Renewed Push for Electric Vehicles

In addition to its existing product lines, M&M is focusing on the electric vehicle segment. The company plans to enter the European market with its upcoming Born Electric (BE) range of vehicles. Mahindra has formed a partnership with German auto giant Volkswagen to use its Modular Electric Drive Kit (MEB) platform in its Inglo platform to develop a global electric vehicle portfolio.

Expanding Production Capacity

To meet the growing demand, M&M is working to increase its monthly production capacity to 49,000 vehicles by March 2024, up from 29,000 vehicles in the financial year 2021-22. The expansion aims to reduce the waiting period for its popular models, including the Mahindra Thar, Scorpio-N, and XUV700.