MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

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, innovation and enhancing people capabilities, we continue to drive growth in the domesticmarket while pursuing global expansion. In the Financial Year 2022-23, your Company sold 6,98,456 vehicles (a growth of 50% over the previous year) and 4,07,545 tractors (under the Mahindra, Swaraj and Trakstar brands, a growth of 14.9% over the previous year). These are the highest ever vehicle sales and tractor sales in any year by the Company. INDUSTRY STRUCTURE, OVERVIEW AND TRENDS AUTOMOTIVE INDUSTRY In Calendar Year 2022, worldwide sales of Passenger Cars and Commercial Vehicles increased to 81.6 million, a de-growth of 1% over the Calendar Year 2021 sales of 82.7 million. Global Passenger Car sales reported a growth of 1.9% and Commercial Vehicle sales reported a de-growth of 8.3%. The global auto industry is still recovering from COVID-19 impact and is down by 11% from an all- rd time high in 2017. India has achieved 3 rank behind China and the United States of America in the segments for passenger and commercial vehicles together. The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 58% CAGR over the last five years. Annual global EV sales stand at 7.1 million which is 12.4% of total PV sales, as compared to just 1% five years back. MANAGEMENT DISCUSSION AND ANALYSIS The Automotive and Farm Sectors, along with their subsidiaries, associate companies and joint ventures, achieved global sales of 1.12 million vehicles and tractors (6,97,494 vehicles and 4,24,276 tractors), a growth of 33.6%over the previous year. 6,98,456 VEHICLES SOLD 4,07,545 TRACTORS SOLD 50% 14.9% 33.6% 6,97,494 VEHICLES 4,24,276 TRACTORS GLOBAL SALES (Source: OICA - Organisation Internationale des Constructeurs d 'Automobiles) 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 during the period between F19 - F23, as compared to the previous ten-year period of F09 - F19. Exports from India too have been impacted in this period. 112 DOMESTIC SALES