NEW DELHI : Tractor and automobile manufacturer Mahindra and Mahindra (M&M)is likely to witness sharp recovery in volumes in the second quarter of this financial year, as quicker recovery is expected in the rural markets compared with urban markets, and there is a likelihood of steady growth in tractor sales due to a good summer crop. In the utility vehicle segment, though, Mahindra is expected to witness stiff competition from multiple players in the domestic market. We estimate the LCV industry to deliver 8-10% CAGR over the next five years," analysts added. “Tractors and Pickup UVs are on a strong footing in terms of outlook, M&M's competitive positioning, and industry-level consolidation. “As an element of normalcy returns post Q1FY22E, however, we expect automotive segment to outperform given the refreshed push for personal mobility, intact offtake from e-commerce industry, good response for new Thar and relatively higher base for tractor segment.

Source: Mint May 31, 2021 08:43 UTC