Integrated Annual Report 2024-25 | 30 RISKS & OPPORTUNITIES Our businesses operate in an environment characterised by inherent internal and external risks, and we have implemented robust systems, processes, and review mechanisms to identify, monitor and mitigate these risks, while proactively exploring emerging opportunities to drive sustainable growth and innovation. KEY RISKS & MITIGATIONS Consumer Sentiment Factors like macro-economic conditions, inflationary pressures, and fluctuations in interest rates could weigh on consumer sentiment. These factors can affect disposable income, savings and investment behaviour, ultimately influencing demand. Additionally, the availability of Electric Vehicle (EV) infrastructure plays a critical role in shaping consumer sentiment toward EV adoption. India has favourable population demographics, currently has controlled inflation and is in a declining interest rate regime. Rising disposable income and growing consumer aspirations are fuelling shift toward vehicles with premium features and larger formats, particularly SUVs. India’s strategic approach to fostering Public-Private Partnerships for EV infrastructure, coupled with rising EV adoption, establishes a strong foundation for developing sustainable EV infrastructure and ecosystem in the country. We consistently monitor evolving consumer preferences and adapt our strategies to align with market demand. Competitive Intensity AUTO The automotive industry is undergoing a significant transformation as both domestic and international automakers strive to strengthen their presence across all segments, intensifying competition levels. This expansion is driven by the need to cater to diverse consumer demands, capitalize on technological advancements, and secure a competitive edge in a rapidly evolving global market. With 22.5% market share in SUVs and 51.9% market share in Light Commercial Vehicles (LCV), Mahindra remains committed to investing in product innovation, technological upgrades, and channel expansion to maintain its leadership position, while focusing on customer-centric products and services. By CY30, we envision expanding our product portfolio with the launch of 7 Internal Combustion Engine (ICE) SUVs, 5 Battery Electric Vehicles (BEVs), and 5 LCVs, reflecting our commitment to innovation, sustainability, and market diversification. FARM India’s agricultural sector is dominated by small and marginal farmers. Competition within this sector is shaped by the presence of numerous players in the tractor industry, influence of government policies, and growing emphasis on sustainable farming practices and organic product adoption. Mahindra, holding a 43% market share in the tractor segment, benefits from significant operating leverage and an extensive distribution network. Additionally, farmers’ loyalty to established brands, further reinforces our competitive position in the industry. Tax Regulations in Passenger Vehicles In India, passenger vehicles are taxed based on factors like length, engine size, ground clearance, body type and fuel type. While our flagship models attract higher taxes, Mahindra has strategically expanded its UV portfolio—featuring models like the XUV 3XO, Bolero Neo, Bolero, and Thar—to focus on models that fall under lower tax slabs. Our EV portfolio comprising of XUV4OO and newly launched BEVs also benefit from a lower GST rate. New Products & Technologies The Indian passenger car industry is undergoing a significant transformation driven by shifting consumer preferences and rapid advancements in technology. There is a clear transition from ICE vehicles to EVs and hybrid vehicles across the auto industry. India’s EV market is also gaining momentum, supported by government initiatives aimed at reducing pollution and tightening emission norms, leading to increasing demand. Mahindra remains committed to developing future-ready products that align with evolving customer needs and regulatory standards. In FY25, Mahindra unveiled two BEVs, reinforcing its focus on sustainable mobility.
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