Mahindra & Mahindra, which has been one of the largest automobile makers in the country, has now a presence all over the world. As its market capitalization touched $44.2 billion, it became one of the world’s top 15 automakers. In India, M&M is currently the second largest manufacturer of automobiles right after Maruti Suzuki.
Top Ranking Auto Makers
As mahindra market capitalization helped the automaker to become one of the world’s leaders, let’s take a look at the automakers topping this list.
So, Tesla Inc. with its market capitalization of $600 billion tops the list, followed by Toyota Motor Corporation of Japan, which has a current market capitalization of $306 billion. In the third position, there is the Chinese auto giant BYD, which is famous for its EVs, and this company has a valuation of around $97 billion.
While the above ranking is for the overall auto market, in the electric vehicle space, Tesla has the highest market share of 19.9% and is considered the largest EV company in the world while BYD captures 17.1% of the market.
Coming to the Indian automakers, it is not only Mahindra and Mahindra that has a place in the top 15 automakers around the world, but Maruti Suzuki, the largest automobile company in India, has the 12th rank in the list with a market capitalization of $47.4 billion, and then m&m market cap in the 14th position followed by Tata Motors in the 15th position.
M&M Financials
The reason behind Mahindra &Mahindra becoming one of the top 15 automakers in the world is its constant growth over the years. If you look at the financials of FY23, you can see its consolidated revenue had jumped 34% compared to FY22 to ₹ 121269 crores. The consolidated PAT (after EI) surged 56% in FY23 on a YoY basis to ₹ 10282 crores.
The company sold the highest number of tractors in FY23 which is 407545 units including domestic and export sales, and from its subsidiaries as well. The sales figure jumped 15% on a YoY basis.
It was not only the tractors, but also M&M recorded the highest total automobile sales in FY23, which was 698456 units. The total sales jumped 50% on a YoY basis.
In India, M&M has a 67.6% market share in the Electric Vehicle – 3 Wheeler segment and a 41.2% market share in the farm equipment segment. In the LCVs segment, M&M also has a very high share which is 45.5% currently.
Future Prospects of M&M
M&M, which is the largest tractor manufacturer in the world, has plans to invest around ₹ 27000 crore in the upcoming 2-3 years as indicated by the company in its investors’ meet. It also targeting to boost the production capacity of its electric vehicles and SUVs. It aims to achieve a monthly 72000 units of these cars by March 2023, which is currently at a 49000 units per month level. By 2030. M&M also aiming to introduce new SUV models, 9 models are in the making out of which 6 are completely new. These SUVs will be diesel and gasoline-powered mostly.
Also Read :- Top Indian Companies by Highest Revenue
Share Price Movement of M&M
In the past 6 months, the share price of Mahindra & Mahindra has jumped from around ₹ 1650 to ₹ 2960. It has been almost close to a 2X increase in the share price. This huge rise in the share price has boosted the market capitalization of the automaker, which helped it secure the 14th position in the world’s top automakers list.
Source : https://www.cnbctv18.com/
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