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Old 7th May 2022, 20:41   #1
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Rumour: Mahindra could restructure its auto business into 3 units

According to a media report, the Mahindra Group has started the process of restructuring its auto business into three separate units.

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The report suggests that Mahindra will undertake a demerger process to separate its EV, tractor and passenger vehicle businesses. At present, all three divisions come under Mahindra & Mahindra.

The report also states that the EV business and its manufacturing plant in Pune will be clubbed with Italian design house Automobili Pininfarina, while the farm equipment and tractor division will become a separate entity. Similarly, the passenger vehicle business will become a standalone entity.

Source: Economic Times

Link to Team-BHP News

Last edited by Aditya : 9th May 2022 at 17:48.
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Old 7th May 2022, 21:53   #2
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re: Rumour: Mahindra could restructure its auto business into 3 units

What about the commercial vehicles business? Will that be a standalone entity or paired with the tractors business?
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Old 8th May 2022, 04:52   #3
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re: Rumour: Mahindra could restructure its auto business into 3 units

Also, Mahindra also makes two wheelers and three wheelers. Where will that be?
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Old 8th May 2022, 08:17   #4
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M&M says NO plans to split company into 3!

False rumour.

Quote:

May 6 (Reuters) - Automaker Mahindra And Mahindra Ltd (MAHM.NS) said on Friday it had no plans to restructure the company into three verticals, following a media report that said the company was considering splitting up into an electric vehicle (EV), a tractor and a passenger vehicle business through a demerger process.

The Economic Times newspaper had reported the Mahindra Group is also seeking funds for the EV unit and will club it with Italian design house Automobili Pininfarina to form a separate company, citing sources familiar with the matter.

"The company ...considers it necessary to clarify to the stock exchanges that there are no plans to split the auto business of the company into three units," the car maker said in a filing to the exchanges.
https://www.reuters.com/business/aut...es-2022-05-06/
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Old 8th May 2022, 14:55   #5
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re: Rumour: Mahindra could restructure its auto business into 3 units

True or false, this remnds me - sadly - of the grossly wasted opportunity that was the Pininfarina acquisition. Sure the XUV 700 looks worlds better than than the "confused macho" looking XUV500 but whats the use of owning a design firm when you dont bother with updating your designs?

Or maybe I'm the one that doesnt get it - maybe Mahindra's customers really like the outlandish looks - I mean, the ugly creta still is a bestseller, so maybe thats the truth.
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Old 8th May 2022, 15:17   #6
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re: Rumour: Mahindra could restructure its auto business into 3 units

Quote:
Originally Posted by norhog View Post
Also, Mahindra also makes two wheelers and three wheelers. Where will that be?
Well the Mojo is a sales dud so I wouldn't be surprised if they shut down Mahindra Two Wheelers and the Jawa, Yezdi and BSA brands are technically under Classic Legends.

The way I see it is that they either make a separate division for 3 wheelers/small commercial vehicles or they merge it with the existing Mahindra Trucks and Busses entity to create something like "Mahindra Commercial Vehicles", my money is on the latter.
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Old 8th May 2022, 16:12   #7
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re: Rumour: Mahindra could restructure its auto business into 3 units

Important to note that Tata already has similar sub-divisions. Tata Commercial Vehicles, Tata Passenger Cars and then, the Electric subsidiary that was formed last year.
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Old 8th May 2022, 18:23   #8
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Re: Rumour: Mahindra could restructure its auto business into 3 units

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Originally Posted by GTO View Post
Important to note that Tata already has similar sub-divisions. Tata Commercial Vehicles, Tata Passenger Cars and then, the Electric subsidiary that was formed last year.
By design or sheer luck (wouldn't be surprised if it's more of the latter with them), Tata found investments for the EV business at the right moment. In cricketing parlance, perfect timing!

Loose fiscal policies in the developed world meant that lots of aimless capital was sloshing around in the markets, looking for investment opportunities. EVs were very very fashionable and new companies reached ridiculous valuations with very little real credible track record. Last year Tata's nascent EV business also benefitted with significant investments from TPG and the Arabs last year.

Now the markets have turned around. Central Banks everywhere are removing liquidity and raising rates. This is the worst time for M&M to look for investors, only if they made a move at least 6 months ago. Albeit nothing in the industry or markets is set in stone, Mahindra automotive is a solid business and will certainly find a great partner looking for opportunities.
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Old 10th May 2022, 09:06   #9
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Re: Rumour: Mahindra could restructure its auto business into 3 units

This is so common these days to first deny and then change the statement as business restructuring.
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Old 27th May 2022, 13:27   #10
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Re: Rumour: Mahindra could restructure its auto business into 3 units

This is their product lineup for the next 4 years:-

Rumour: Mahindra could restructure its auto business into 3 units-f1f668aa4c354c0bac4b153cf13d3165.jpeg

EV division is a definite.

PVs are also going to be divided into two separate sections in present/future Mahindra dealerships, with the High-End SUVs such as the 7OO, 9OO and above having a separate section.
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