annual-report-FY2020

58 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Rabi production, higher Government procurement, announcement of higher MSPs leading to better realisation to the farmers and outlook of a normal monsoon aiding sentiments for a good Kharif crop. The Company’s Auto sales traditionally come from both rural and urban segment. On account of positive factors stated above, the Company expects quicker recovery in rural India and rural demand to improve sales momentum for Auto Sector while urban segment will take little longer time to come back to normalcy. Factors such as lower household incomes, employment uncertainty, higher cost of finance and difficulty in getting finance as a result of potential rise in NPA in the Financial Sector may result in demand constraints for discretionary items like automobiles. Although there are uncertainties due to the pandemic, the Company is taking several measures to mitigate the adverse impact by optimising costs and continuously realigning the cost-structures to the activity level. Performance Review Automotive Sector Your Company’s Automotive Sector, posted total sales of 4,71,141 vehicles (4,11,345 four-wheelers and 59,796 three-wheelers) as against a total of 6,07,548 vehicles (5,37,639 four-wheelers and 69,909 three-wheelers) in the previous year, registering a de-growth of 22.5%. In the domestic market, your Company sold a total of 4,44,218 vehicles as compared to 5,69,092 vehicles in the previous year resulting in a de-growth of 21.9%. In the Passenger Vehicle (PV) segment, your Company sold 1,86,942 vehicles [including 1,79,405 Utility Vehicles (UVs), 6,679 Vans and 858 Cars] registering a de-growth of 26.5%, as compared to the previous year’s volume of 2,54,351 vehicles [including 2,35,362 UVs, 17,451 Vans and 1,538 Cars]. In the Commercial Vehicle (CV) segment, your Company sold 1,99,131 vehicles [including 36,475 vehicles <2T GVW, 1,51,384 vehicles between 2-3.5T GVW, 5,415 LCVs in the LCV > 3.5T segment, 760 vehicles in the 7.5-16.2T GVW segment and 5,097 Heavy Commercial Vehicles (HCVs)] registering a de-growth of 19.9% over the previous year’s volume of 2,48,601 commercial vehicles, [including 53,149 vehicles < 2T GVW, 1,76,203 vehicles between 2-3.5T GVW, 8,235 LCVs in the LCV > 3.5T segment, 176 vehicles in the 7.5-16.2T GVW segment and 10,838 HCVs]. In the three-wheeler segment, your Company sold 58,145 three wheelers, registering a de-growth of 12.1% over the previous year’s volume of 66,140 three wheelers. For the year under review, the Indian automotive industry (except 2W) de-grew 18.8%, with the Passenger Vehicle (PV) industry de-growth of 17.9% and Commercial Vehicle (CV) industry de-growth of 28.8%. The UV segment of the PV industry posted a flat performance with 0.5% growth. Within the CV industry, the LCV goods <3.5T segment de-grew 20.2% while the HCV goods segment de-grew 56.0%. Your Company’s UV volume stood at 1,79,405 units, a de-growth of 23.8%. The UV market share for your Company stood at 19.0%. For the year under review, your Company’s PV volume stood at 1,86,942 units with a market share of 6.7%. The Stylish & Thrilling XUV300 launched in February, 2019 performed well in the compact UV segment with a volume of 37,576 units for Financial Year 2020. Scorpio, XUV500 and Bolero continued to be strong brands for your Company in the UV segment. In the LCV<3.5T segment, your Company retained its No.1 position with a 45.7% market share. Your Company sold a total of 1,87,859 vehicles in this segment. Your Company has a market share of 65.3% in the LCV 2-3.5T segment, which is the Pik-UP segment. In the Medium and Heavy Commercial Vehicle (MHCV) segment, your Company sold 5,857 trucks as against 11,014 in the previous year. This is a de-growth of 46.8%. Your Company’s market share in the HCV segment stands at 5.0%. Your Company is the pioneer for Electric Vehicles (EVs) in India, and for the year under review, sold [along with its subsidiary Mahindra Electric Mobility Limited (MEML)] 14,602 EVs (966 four wheelers and 13,636 three wheelers) as against 10,276 EVs (1,811 four wheelers and 8,465 three wheelers) in the previous year. This growth is supported by the Governments’ thrust on adopting EVs, and sustained effort by your Company in working with various stakeholders, especially fleet operators. During the year under review, your Company posted an export volume of 26,923 vehicles as against the previous year’s exports of 38,456 vehicles. This is a de-growth of 30.0%. The spare parts sales for the year stood at Rs. 2,494.5 crores (including exports of Rs. 230.8 crores) as compared to Rs. 2,633.5 crores (including exports of Rs. 284.0 crores) in the previous year, registering a de-growth of 5.3%.