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48
MOTORINDIA
l
September 2012
M&M
vehicle sales spurt
despite several odds
The year 2011-12 was a very dif-
ficult and challenging one. There
were problems during the year stem-
ming from the state of sovereign
debts of many advanced economies,
turmoil in the Middle East, weaken-
ing global economic environment
and India’s rising fiscal and current
account deficits.
Addressing the 66th annual gen-
eral meeting of Mahindra & Mahin-
dra, Mr. Keshub Mahindra, the out-
going Chairman, said that in spite
of the turbulence and uncertainties,
the company business continued to
grow. In the automotive sector, it
registered a growth of nearly 29 per
cent, while in the case of tractors,
the growth was 10 per cent despite
the sluggish conditions in the year
gone by.
The company acquired majority
holding in South Korean SsangYong
Motor Company and opened its
world class engineering and re-
search and development centre, the
Mahindra Research Valley (MRV),
in Chennai. Spread over 125 acres,
this facility was set up at an invest-
ment of Rs. 650 crores and presently
has a workforce of 1,500 persons.
Gross revenues and other income
of the company for the year, together
with MVML, is Rs. 10,003.9 crores
as against Rs. 7,400 crores during
the corresponding period last year,
showing a growth of 35.2 per cent.
Net profit of the quarter is Rs. 778.5
crores (Rs. 618.3 crores), a growth
of 25.9 per cent.
The company’s strong results have
been attained through a disciplined
strategy, cutting costs, curbing ex-
penditures, and maintaining growth
by meeting the ever-changing con-
sumer demand.
However, Mr. Mahindra said, the
economic uncertainties of the year
under review aggravated further
in the current year, with the Indian
economy facing a persistent infla-
tion, a volatile currency, lower GDP
growth of below six per cent, high
interest rates, the price of oil re-
maining high, and the threat by the
rating agencies to downgrade the
country’s rating.
The risks of a full-fledged crisis
in Europe remain high, Greece is in
a dire state, Spain is showing signs
of recession and Italy is showing
unacceptable figures of stability.
China too is also showing signs of
slowing down and oil markets are in
a flux. At the same time, weak do-
mestic macros – high inflation, large
fiscal and current account deficits –
continue to constrain policy actions
critical to supporting growth.
According to Mr. Mahindra,
though the future indeed looks
challenging, there is hope that in
vehicle zone
Mr. Keshub Mahindra
The company recorded total sales of
1,22,571 vehicles, as compared to
95,238 vehicles in the previous year,
registering a growth of 28.70 per cent.