Mahindra & Mahindra, a software and automotive company, has announced that it will invest a total of Rs 37,000 crore over the next three years, from FY25 to FY27. Of this, the company intends to spend Rs 14,000 crore on gasoline and diesel cars, with an additional Rs 12,000 crore set aside for MEAL (Mahindra Electric Automobile Ltd.), the group’s electric vehicle company.
Each of the group’s agricultural and service sectors receives a financial allocation of Rs 5,000 crore. An additional Rs 1,000 crore is scheduled to be invested in additional subsidiaries. According to corporate representatives, this does not include cell localization expenses.
Auto Industry’s Investment Breakdown & Future Plans
A significant portion of this will go toward introducing new items and upgrades. In the auto industry, the capital expenditures for ICE SUVs will total Rs 8,500 crore, commercial vehicles will cost Rs 4000 crore, and sustenance will cost an additional Rs 1500 crore.
By 2030, the business plans to release seven new battery-electric goods, nine new internal combustion engine (ICE) products, and seven new light commercial vehicles. Three “mid cycle enhancements” are part of the ICE debuts, and they include the newly released XUV3XO and six new SUVs. The seven LCVs in the sub-3.5-ton class consist of two EVs and five ICE vehicles.
Anish Shah, CEO & MD of Mahindra Group, stated that M&M and British International Investment (BII) have “mutually agreed to extend the timeframe for the final tranche of BII’s planned investment of Rs 725 crore in MEAL and will jointly assess whether additional investment is required by December 31, 2024.” M&M and its auto division expect to generate sufficient operating cash to satisfy capital investment needs. In MEAL, Temasek has committed an additional Rs 300 crore, and BII has already spent Rs 1,200 crore. According to schedules set forth, “Temasek will invest the remaining Rs 900 crore,” he continued.
Mahindra plans to invest
The company’s consolidated PAT for the year is up 25% at Rs 11269 crore, while its standalone PAT for FY24 was up 48% at Rs 10,718 crore. Shah stated that this accomplishment was achieved in spite of “stress in the rural/farm industry and Tech Mahindra PAT down 52%.”
The firm presently holds 2,20,000 reservations for its auto sector, with 50,000 open for the XUV 3XO, 59,000 for Thar, 16,000 for the XUV700, 10,000 for Bolero, and 86,000 for Scorpio N.
In total, 48,000 new reservations and 42,000 billings are made each month, according to Rajesh Jejurikar, ED & CEO, AFS, M&M. Additionally, the business is increasing capacity to expedite deliveries. According to him, the total capacity of SUVs will increase from 49,000 units in FY24 to 64,000 units in FY25 and 72,000 units in FY26. The FY25 exit capacity comprises 10,000 EV units and a 5000-unit increase in SUV capacity (THAR 5D, XUV3XO/4OO). “By the end of FY26, there will be an extra 8,000 units of EV capacity,” he continued.
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