Mahindra & Mahindra's Market Cap Reaches $44.2 Billion, Ranks Among Top Global Automakers

Mahindra & Mahindra (M&M), a leading Indian automaker, has achieved a remarkable feat by securing a spot among the top 15 auto manufacturers globally. This impressive accomplishment comes alongside its position as the second-largest automaker in India, solidifying its position as a major player in the automotive industry.

Mahindra & Mahindra Surpasses Hyundai

With a market capitalization of $44.2 billion, M&M has surpassed the Korean giant Hyundai Motor Company in the global rankings. This achievement highlights the growing strength and influence of Indian automakers on the world stage.

Tesla and BYD Lead the Charge in Electric Vehicles

While Tesla remains the undisputed leader in the electric vehicle (EV) market with a staggering market capitalization of $600 billion, BYD, the Chinese EV powerhouse, follows closely behind with a valuation of $97 billion. These two companies currently hold the top two spots in the global EV market, boasting market shares of 19.9% and 17.1%, respectively.

Indian Automakers Make Their Mark

Interestingly, India is making significant strides in the global automotive landscape. Three Indian manufacturers – Maruti Suzuki, M&M, and Tata Motors – have all secured positions among the top 15 automakers worldwide. Maruti Suzuki sits comfortably at the 12th spot with a market valuation of $47.4 billion. M&M and Tata Motors hold the 14th and 15th positions, respectively, demonstrating the growing competitiveness of the Indian automotive industry.

M&M's Stock Soars on Strong Performance

M&M's stock has been on a tear lately, with a gain of 1.1% on Tuesday, adding to its impressive three-day run that saw a total increase of 6.3%. Furthermore, M&M has outperformed all Nifty50 companies so far in 2024, with a remarkable year-to-date gain of approximately 71%.

Investing in the Future: M&M's Growth Plans

M&M, the world's largest tractor manufacturer, is committed to continued growth. The company recently announced plans to invest a substantial ₹27,000 crore between FY25-FY27. This investment will be directed towards boosting production capacity for EVs and SUVs, aiming to reach a target of 72,000 units per month by March 2026. This represents a significant increase from the current production capacity of 49,000 units per month.

Additionally, M&M plans to introduce nine new diesel and gasoline-powered SUVs by 2030, including six entirely new product offerings. This strategic move demonstrates their commitment to catering to a diverse market while exploring alternative fuel options.

Maintaining Leadership in the Tractor Market

Despite a decline in the overall tractor industry during FY24, M&M has shown remarkable resilience. The company retained its leadership position in the tractor segment with a market share of 41.6%, showcasing its strength and adaptability. This market share represents a year-on-year gain of 40 basis points, further solidifying M&M's dominance in the tractor market.

M&M's success extends beyond maintaining its leadership position. They have also achieved a significant market share gain of 12.8% in the 20-30 HP segment during the second half of FY24. This growth can be attributed to the successful launch of their OJA and Target tractor series.

On Tuesday, M&M's stock reached yet another record high of ₹3,013.95 on the NSE, extending its winning streak for the third consecutive day. This is a clear indication of investor confidence in the company's future prospects.