Mahindra Continues to Rake in Profits as SUV Sales Surge

The company sold 152,067 units in Apr-June, displacing Hyundai as the 2nd largest carmaker

- Ayaan Kartik

Mahindra and Mahindra Ltd registered a fourth consecutive quarter of more than a 20% jump in net profit, as the maker of Thar and Scorpio continued to see a surge in sales of sports utility vehicles (SUVs) despite a broader slowdown in demand for cars in India.

The Mumbai-based automaker saw its profit surge by 24% to ₹4,376 crore, the company said in an exchange filing on Wednesday, as its pricier SUVs such as XUV700 logged better sales growth compared to the industry average and its closest rivals.

Profit margins for the automobile business remained stable at around 10%, excluding the electric contract manufacturing business the firm does for its EV subsidiary.

Thanks to a 22% jump in total passenger vehicle sales to 152,067 units in the first three months of the current fiscal year, Mahindra's revenue surged to ₹46,446 crore. The management highlighted during a call with media and analysts that its robust performance came despite the demand environment continuing to remain tough in urban areas.