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

We showcased our audacious vision for the future of electric mobility with the unveiling of our new state-of-the-art EV platform INGLO and f ive new production-ready e-SUVs under two EV brands (Mahindra Twin Peak and BE). Your Company is constantly leveraging multiple emerging technologies, including EVs, digital-enabled platforms and HMI with software-def ined vehicles and is upskilling its product design engineers in evolving f ields of data science, AI, IoT, mechatronics, and so on, to aid in the development of new products. Mahindra Research Valley, the flagship R&D and innovation centre has been granted 210 patents, the highest number of patents to any Indian Original Equipment Manufacturer ("OEM"), from across the globe in the last six quarters, which is testimony to the cutting-edge work being done by its diverse and talented workforce. saw a growth of 5-6% annually and monsoon plays a critical role in def ining the cyclical nature of the industry and therefore remains a key monitorable. Going into F24, the Indian Meteorological Department (IMD) in its f irst long range forecast for the monsoon season predicted SW Monsoon (June to September) to be normal at 96% of the LPA (Long Period Average). However, with the growing concerns of El-Nino, there is possibility of disruptions either in spatial or temporal distribution. Reservoir levels in May, 2023 were 23% higher than average. Adequate water in reservoirs coupled with excess rainfall in the pre- monsoon months of March to May supported irrigated lands. However, the above-normal heat wave days in May, 2023 over most parts of Bihar, Jharkhand, Odisha, Gangetic West Bengal, East Uttar Pradesh, coastal Andhra Pradesh and some parts of North Chhattisgarh, East Madhya Pradesh, Telangana and coastal Gujarat caused some disruption in land preparation activity before the Kharif sowingmonths. Nevertheless, a normal monsoon outlook and water reservoir level better than 10-year average will be positives for the farming sector. Macroeconomic tailwinds mostly remain intact for the rural economy, and with likely higher Government support, particularly with 6 states going for elections, this bodes well for tractor demand. STRATEGY AUTOMOTIVE SECTOR Your Company is India's #1 SUV player in Revenue Market Share. The Scorpio-N launch has been very successful, followed by electric C-SUV XUV400. The LCV <3.5T witnessed very strong momentum with PIK-UPs and the successful launch of Maxx PIK-UP. The EV 3Ws hit record sales and a dominant market leadership position with ~65%share. We reinforced our vision by setting-up Mahindra Electric Automobile Limited ("MEAL"), valued at USD 9 billion (INR 70 thousand crores) with an investment from British International Investment ("BII"). In parallel, Last Mile Mobility ("LMM") is following suit with a valuation of INR 6 thousand crores with International Finance Corporation ("IFC") investing in the LMM segment to further the purpose of electrif ication. In line with our EV vision, we announced to make investments of INR 10 thousand crore over a horizon of 7-8 years through our subsidiaries. These investments shall be for setting up the manufacturing facility, development, and production of our upcoming Electric Vehicles. Environmental, Social and Governance (ESG) is a key priority for the Company. We have increased share of renewable power usage while achieving goals of manufacturing emissions and power intensity. We continue to be the only Indian Auto OEM in Dow Jones Sustainability Index (DJSI) Ranking. The Company plans to capitalise on its strengths and the upcycle across SUVs and CVs over the next few years. Of the 13 new launches, we plan to launch 8 New EVs by 2027 that will comprise 20%of our volume. FARM EQUIPMENT SECTOR During the year, your Company entered the next phase of growth amid heightened competition and disruption based on new technologies and trends, with farm mechanisation gaining more and more traction. During the year, Mahindra launched various new tractor models, as well as new implements and farmmachinery in the country through collaboration with our COEs in Turkey, Finland and Japan (where M&M, over the years, has created footprints through strategic stakes and acquisitions). In F23, the Company also set up a dedicated new farm machinery plant in Pithampur. The new farm machinery plant has state-of-the- art machinery, which work together seamlessly to produce high- quality farmequipment. 128