MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

Mahindra & Mahindra Limited ("M&M") or ("Mahindra") is the flagship company of the Mahindra Group, which consists of diverse business interests across the globe. At Mahindra, we constantly push the boundaries of possibilities to create products and technology led services that enable our customers and stakeholders to Rise. By focussing on customer centricity, delivering accessible technology, innovat ion and enhanc ing people capabilities, we continue to drive growth in the domestic market while pursuing global expansion. In the Financial Year 2021-22, your Company sold 455,570 vehicles (a growth of 30.7% over the previous year) and 354,698 tractors (under the Mahindra, Swaraj and Trakstar brands, a at growth over the previous year, albeit with a marginal increase of 200 units over last year). However, this is the highest ever tractor sales in any year byMahindra's FarmEquipment Sector. The Automotive and Farm Sectors, along with their subsidiaries, associate companies, and joint ventures, achieved global sales of 0.84 million vehicles and tractors (464,636 vehicles* and 375,023 tractors), a growth of 15.1%over the previous year. VEHICLES SOLD 455,570 TRACTORS SOLD 354,698 HIGHEST EVER TRACTOR SALES 30.7% INDUSTRY STRUCTURE, OVERVIEW AND TRENDS Automotive Industry In CY2021, worldwide sales of Passenger Cars and Commercial Vehicles increased to 82.7million, a growth of 5.0% over the CY2020 sales of 78.8 million. Global Passenger car sales reported a growth of 4.6% and commercial vehicle sales reported a growth of 5.7%. The global auto industry is still recovering from COVID-19 impact and is down by 14%froman all-time high in 2017. The long-term growth outlook for the Indian auto industry is positive, driven by robust economic growth outlook, focussed Government policies with vision for 2047, Government focus on road and infrastructure development, increasing income levels, current low levels of vehicle penetration, rapid urbanisation and a large, young and aspiring population. While the long-term outlook for the Indian auto industry is promising, there has been some softening of demand for automobiles in the three-year period between F19 - F22, as compared to the previous ten-year period of F09 - F19. Exports from India too have slowed down in this period. (Source: OICA - Organisation Internationale des Constructeurs d'Automobiles) The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 49% CAGR over the last four years. Annual global EV sales stand at 3.6 million which is 6.4% of total PV sales, as compared to just 0.6% five years back. Management Discussion and Analysis *Excluding SsangYong MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 109