Mahindra & Mahindra has informed stock exchanges that its Japanese associate company, Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM), will withdraw from the agricultural machinery business and proceed with liquidation. The announcement was made on 2nd March 2026, marking the end of MAM's operations in the agricultural machinery sector that began in 1914.

Business Withdrawal Decision

MAM's board of directors approved the withdrawal from agricultural machinery business on 2nd March 2026, citing continued losses despite multiple structural reform measures. The company determined that sustaining the business in a stable manner would be challenging after assessing long-term viability and financial sustainability. The withdrawal encompasses research and development, production, and domestic and overseas sales of agricultural machinery, with cessation planned for the first half of fiscal year 2027.

Financial Impact on Mahindra Group

The restructuring will have measurable effects on Mahindra's consolidated financials based on MAM's performance for the year ended 31st March 2025:

Continuing Operations and Customer Support

Despite the business withdrawal, MAM will maintain certain operations to support existing customers. The company will continue providing spare parts supply and product warranty services for its products. This approach aims to minimize inconvenience to customers who have supported MAM's products over the years. Each business partner will be contacted individually regarding the transition.

Liquidation Process and Employee Support

MAM plans to dissolve and proceed with ordinary liquidation procedures in accordance with the Companies Act. The company will provide maximum possible reemployment support to employees who are required to leave as a result of the business withdrawal, except for those engaged in the continuing spare parts and warranty business. The liquidation completion is expected to eliminate annual losses and reduce funding requirements for the promoter group.

Strategic Background

Since its founding in 1914, MAM has engaged in agricultural machinery business with the aim of contributing to stable food supply in Japan and overseas. The company implemented structural reforms, developed new products to meet evolving market needs, and expanded into new markets. However, after comprehensive consideration of changes in domestic and international industry environment, demand structure, and production system constraints, MAM concluded that continuing the business sustainably would be difficult.

The company expressed gratitude to customers, business partners, and related parties for their support over many years of operations. MAM has established a contact system for inquiries regarding the business withdrawal, with dedicated communication channels available from March 2, 2026 to March 31, 2026.

Mahindra & Mahindra Limited delivered impressive performance across all business segments in February 2026, demonstrating strong market demand and robust growth momentum. The company's diversified automotive portfolio showed consistent expansion, with total vehicle sales reaching 97,177 units and significant growth recorded in SUVs, tractors, and commercial vehicles.

Automotive Division Achieves Strong Growth

The automotive division recorded total vehicle sales of 97,177 units in February 2026, representing an 18% year-on-year growth including exports. SUV sales emerged as a key growth driver, with domestic sales reaching 60,018 units, marking a 19% increase compared to the previous year. Including exports, total utility vehicle sales stood at 60,685 units.

According to Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd., "February saw SUV sales of 60,018 units, a growth of 19% reflecting robust customer demand across the portfolio. Total vehicle sales stood at 97,177 units, an 18% year-on-year growth."

Commercial Vehicles Show Steady Performance

The commercial vehicles segment demonstrated solid performance with domestic sales of 24,585 units, achieving 10% growth. The segment showed varied performance across categories, with LCV 2T-3.5T vehicles leading growth at 12% with 21,416 units sold. Three-wheelers, including electric variants, showed exceptional growth of 44% with 9,190 units sold.

Farm Equipment Business Delivers Exceptional Growth

The farm equipment business reported outstanding performance with domestic tractor sales of 32,153 units in February 2026, reflecting a robust 35% year-on-year growth compared to 23,880 units in February 2025. Total tractor sales including exports reached 34,133 units, while export sales stood at 1,980 units with 20% growth.

Veejay Nakra, President – Farm Equipment Business, commented, "We have sold 32,153 tractors in the domestic market during February 2026 registering a robust growth of 35% over last year. Robust growth in the rabi sowing area, healthy reservoir levels, favourable kharif harvest is strengthening cash flows in rural markets."

Trucks and Buses Business Maintains Growth Trajectory

The trucks and buses business, comprising Mahindra Trucks & Buses division (MTBD) and SML Mahindra Limited (SML), achieved total sales of 3,018 vehicles in February 2026, marking 13% year-on-year growth. Cargo vehicles recorded 1,521 units with 12% growth, while passenger vehicles reached 1,497 units with 15% growth.

Vinod Sahay, Executive Chairman – SML, President – Aerospace, Defence, Trucks, Buses & CE, noted, "Commercial vehicle industry continues to show strong momentum since last quarter reinforcing confidence in the sector's trajectory. Looking ahead the outlook remains robust, underpinned by ongoing government investments, accelerated fleet modernization, and steady freight movement."

Export Performance Strengthens Overall Results

The company's export performance contributed significantly to overall growth, with total exports reaching 3,384 units in February 2026, representing 11% growth compared to 3,059 units in the previous year. This export growth complemented strong domestic performance across all business segments, reinforcing Mahindra's comprehensive market presence.