MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 34 OPPORTUNITIES & OUTLOOK In both the Automotive and Farm Sectors, our aim is to sustain profitable growth while maintaining a leadership position domestically and exploring global opportunities. We remain committed to achieving cost leadership through focused cost optimisation, productivity enhancements, value engineering, efficient supply chain management, and leveraging synergies across our group businesses. AUTOMOTIVE SECTOR While the long-term outlook for the Indian Auto Industry is promising, the industry took four years to pre-COVID levels in commercial vehicles, threewheelers and two-wheelers. Passenger vehicles which had already recovered to reach pre-COVID levels last year, crossed the 4.2 millionth mark in F24. Factors that may significantly influence demand for automobiles in F25 are: Ÿ Policies by the Government to boost consumption. Ÿ Aggressive Government push for infrastructureled growth. Ÿ Increase in cost of ownership due to commodity price and fuel price increase. As per the Automotive Mission Plan 2026 (AMP 2026), the mid to longterm outlook for the Indian auto industry is positive. FARM EQUIPMENT SECTOR The mid to long term outlook for the Indian tractor industry is positive. The industry is seeing an upswing with harvesting of crops underway and expectations of a bumper crop this Rabi season. Acreage of summer crop which is sown between Rabi and Kharif season has crossed last year's level which is also promising for the farmer community. Government budgets on infrastructure and rural development are likely to benefit commercial demand. Further, the demand for mechanisation is also growing as shortage of agricultural labour will lead to increase in labour cost. For detailed information on the risks and opportunities and outlook, please refer to the Management Discussion and Analysis section, page no. 157-160, in the Integrated Annual Report 2023-24.
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