Industry Profile. :. The Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in the Two-wheeler market and is a leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15.
Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company Profile: Mahindra and Mahindra, an Indian multinational automobile company, is one of the largest manufacturers of tractors in the world. The company was set up as a steel trading company in 1945 in Ludhiana. Mahindra produces many vehicles, including MUVs, LCVs, and three-wheelers. In addition, it manufactures over 20 models of cars, including larger, multi-utility vehicles like Scorpio, Bolero, XUV 500, Quanto, Verito, Xylo, and e2o Indias, leading electric vehicles. Mahindra began manufacturing tractors for the Indian market during the early ’60s. It is the top tractor company in the world (by volume), with annual sales totaling more than 200,000 tractors. Since its inception, the company has sold over 2.1 million tractors. Mahindra tractors are available in 40 countries, including India, the United States, China, Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America, and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and Eastern Europe (Serbia, Turkey, and Macedonia. The company manufactures them in four plants in India, two in China, there in the US, and one in Australia.
Shareholding Pattern: BSE Data
Financials and Ratios :. [table id=79 /]
Future Prospects: The company is not going anywhere in the last few quarters. It is like a standstill. The share price is also the same. Mainly because it is not an Automobile but a Tractor Company. To show better performers, the company needs to sell more tractors. Recently the company invested heavily in the Passenger Vehicle segment, which Maruti Suzuki and Tata dominate. Even though the Automobile business is performing well, Agriculture segments are lagging. The agriculture segment also needs to perform better for a company.
