Your Company is a pioneer of Electric Vehicles in India and is actively pursuing development of the Electric Vehicle (EV) market, products and technology. Along with Electrification, your Company is also working on alternate fuels technology. India has traditionally seen a tax rate differential between small and large passenger vehicles. This differential is based on length of the vehicle, engine size and fuel type. While the flagship products of your Company attract higher tax rates, your Company has strengthened the UV product portfolio attracting lower tax rates with products like XUV300, Bolero Neo, Bolero Power Plus and Thar. XUV400 attracts minimum GST amongst all passenger vehicle categories. TAX REGULATIONS In FY 2023-24, every second passenger vehicle sold was a utility vehicle. Milestone of 1 million annual UV sales was crossed in F20 and it took just 4 years to cross 2.5 million annual sales mark. LCV Goods < 3.5T continue to dominate Commercial Vehicle sales with a share of 47.6%. With the aim to remain competitive in the market and sustain its leadership position, your Company continues to invest in new product development, technology upgradations, increasing channel reach, while focussing on delivering customer centric products, services and brand building. Concerns over road safety are driving legislation and regulatory reforms. Any new legislation requires technology development and incurring of costs, in turn impacting vehicle prices. Your Company is geared up and is confident of meeting any new regulations introduced. NEW REGULATION FOR SAFETY Your company has a comprehensive programme for development of new products and technologies which will enable it to remain competitive in the market, cater to emerging customer expectations and to meet any legislative requirements. Along with Electrification, your Company is also working on alternate fuels technology. NEW PRODUCTS AND TECHNOLOGIES With concerns over air quality and the need to reduce dependence on fossil fuels, the Government is actively pursuing large scale adoption of EVs, especially for intracity uses in fleet application. ENVIRONMENT AND ALTERNATE FUELS The Commodity prices in the FY 2023-24 were moderate for most part of the year compared to the previous year, on account of lower global manufacturing activity and weak economic outlook, due to elevated policy interest rates in the major world economies. Your Company stayed focused on cost reduction through measures like Value Addition (VA) / Value Engineering (VE), negotiation with suppliers, long term price contracting, etc. Your Company continues to watch the market situation closely and continues to focus on mitigating commodity price volatility through "Commodity Risk Management". Hedging of currencies and commodities is being governed in accordance with the Foreign Exchange Risk Management Policy and Commodity Risk Management Policy approved by the Board of Directors of your Company. COMMODITY PRICES Through sustained efforts over the year, your Company has enhanced monthly capacities of SUVs by 25%. We anticipate producing 2,00,000 EVs between 2027 and 2029 from our cutting edge Born Electric range. Furthermore, our investment proposal of Rs. 10,000 Crores for electric vehicles was also approved under the Industrial Promotion Scheme of Government of Maharashtra for Electric Vehicles. Pursuant to our announcement of the Rs. 1,000 crores investment in Last Mile Mobility (LMM) business, we organised a ground-breaking ceremony for a new manufacturing unit. With this new facility, we aim to build state-of-the-art battery assembly line, CAPACITY MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 158
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