Mahindra & Mahindra Limited, a leading Indian automotive manufacturer, has released its production and sales figures for January 2024, showcasing significant growth compared to the previous year. The company also provided comparative data for February 2022, highlighting its consistent performance over time.

January 2024 Performance

Mahindra & Mahindra demonstrated strong growth in both production and sales for January 2024:

• Total production reached 101,169 units, up from 76,421 units in January 2023, marking a substantial increase of 32.40%.
• Total sales climbed to 72,198 units, compared to 61,326 units in the prior year, representing a 17.70% growth.

Key Model Performance

The company's popular models showed impressive production figures in January 2024:

February 2022 Retrospective

Looking back at February 2022, Mahindra & Mahindra reported:

• Commercial vehicle production of 21,686 units, a significant increase from 15,330 units in February 2021.
• Commercial vehicle sales reached 20,166 units, more than doubling from 9,202 units in the previous year.

Additional Notes

Mahindra & Mahindra disclosed that figures from September 2023 onwards include sales from its subsidiary, Mahindra Last Mile Mobility Limited. The company emphasized that all reported figures remain unaudited.

The automotive giant has submitted these production, sales, and export data to various stock exchanges, including NSE, BSE, Luxembourg, and London Stock Exchange, ensuring transparency and compliance with regulatory requirements.

This robust performance across various models and segments underscores Mahindra & Mahindra's strong market position and its ability to meet growing consumer demand in the automotive sector.

Mahindra & Mahindra (M&M) shares experienced a significant boost, jumping 7.8% to Rs 3,539.25, as brokerages identified the automaker as a major beneficiary of India's recent Goods and Services Tax (GST) overhaul. The GST Council's decision to restructure the tax system has sparked optimism in the auto sector, particularly for M&M's diverse vehicle portfolio.

GST Restructuring Details

The GST Council has implemented a simplified tax structure, featuring two main slabs:

• 5% and 18% for most goods
• 40% levy for luxury goods

This restructuring has notable implications for the automotive industry:

• Small petrol, hybrid, LPG, and CNG cars under 1,200cc will now face an 18% GST rate, down from the previous 28%
• Larger SUVs will be taxed at 40%, a reduction from the earlier 43-50% range
• Tractor GST has been reduced from 12% to 5%

Impact on Mahindra & Mahindra

Brokerages have highlighted several positive outcomes for M&M:

1. SUV Tax Cuts: Jefferies pointed out the surprise win for M&M in the form of SUV tax reductions.

2. Portfolio Shift: Emkay Global noted that nearly two-thirds of M&M's portfolio will shift to the 40% rate from 50%, with the remainder moving to 18% from 28%.

3. Potential Demand Boost: Brokerages expect these changes could stimulate auto demand by 5-10% across various categories.

Market Response

The positive outlook for M&M and the auto sector as a whole was reflected in the market:

• M&M shares surged by 7.8% to Rs 3,539.25
• The Nifty Auto index gained nearly 4% on the news

Company Update

In a recent disclosure to stock exchanges, Mahindra & Mahindra reported its participation in the Ashwamedh – Elara India Dialogue in Mumbai. The company engaged with various funds and investors in one-on-one and group meetings, sharing a presentation previously made available. M&M emphasized that no unpublished price-sensitive information was shared during the conference.

The GST restructuring, coupled with M&M's strong market position and diverse vehicle portfolio, has created a positive sentiment among investors. As the auto industry adapts to these tax changes, all eyes will be on how manufacturers like Mahindra & Mahindra capitalize on the potential increase in demand across various vehicle categories.