Tractor segment likely to grow by 20% in FY21
The tractor segment of the automobile industry growth expected to be robust at around 20 per cent in FY21, it was informed by Mahindra & Mahindra (M&M) in an earning call here on Friday.
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Mumbai, Feb 6 The tractor segment of the automobile industry growth expected to be robust at around 20 per cent in FY21, it was informed by Mahindra & Mahindra (M&M) in an earning call here on Friday.
M&M has lost share in FY21 mainly due to production constraints. Performance in FY22 would depend on how monsoons pan out, but high base would limit quantum of growth. South region is expected to outpace others due to favourable base.
Thar UV order bookings stands at over 39,000 vehicles. Of this, 45 per cent of bookings are for automatic transmission. Thar production to be ramped up to 4,000 units by Apr-May'21. XUV300 order bookings are strong, with 2-2.5 months of waiting period, the company said.
Electric vehicles (EVs) remain a focus area for the company. Last time transport is doing well with products such as Treo Zor and Atom launch is expected in FY2. XUV300 electric version to be launched in FY22, and the company is working on range new platforms for SUVs – Born Electric platforms, with support of Detroit Technical centre.
Supply chain issues relating to semi-conductor and steel availability is expected to impact production levels in near-term. Company will try to maintain current level of production, but is unlikely increase production despite strong demand. Dealer inventory levels remain low.
Commodity price increases remain a concern and company is trying to partially offset through price increases and cost controls.
In Q3, results included one-time investment promotion subsidy of Rs 90 crore. There was also an exceptional item of Rs 30 crore relating insurance claim benefit, the company said.
