annual-report-FY2021

29 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 OPPORTUNI T I ES & OUTLOOK Both the Automotive and Farm Sectors strive to sustain profitable growth, maintain the leadership position in the domestic market and at the same time, explore global opportunities for growth. Simultaneously, we continue to focus on achieving cost leadership through focused cost optimisation, productivity improvements, value engineering, supply chain management, and tapping into synergies between various group businesses. AUTOMOTIVE SECTOR FARM EQUIPMENT SECTOR F21 was a difficult year for the industry due to the COVID-19 pandemic. We expect the Government to work closely with the industry to put it back onto a growth path. Policies by the Government to boost consumption Availability and affordability of finance Sentiment in rural economy - driven by agri incomes An aggressive government push for infrastructure-led growth India, with its large base of small and marginal farmers, has several regions with low penetration of farm mechanisation. With increasing labour cost and labour scarcity, greater adoption of various forms of mechanisation is the way forward. The mid to long term outlook for the Indian tractor and farm equipment industry is positive. On the demand front, the agri and rural sector would continue to see good sentiment owing to consecutive good harvest seasons supported by good monsoon and healthy reservoir level. Timely procurement and continued efforts by the Government of India through rural development sanctions and direct benefit transfer schemes has ensured liquidity in the hands of farmers. As per the AutomotiveMission Plan 2026 (AMP 2026) the mid to long-term outlook for the Indian auto industry is positive. Factors that will significantly impact demand for automobiles in F22 are: 1 2 3 4 For detailed information on the risks and opportunities and outlook, please refer to the Management Discussion and Analysis section, page no.119, in the Integrated Annual Report 2020-21.