Mahindra & Mahindra is a well-known brand in the Indian automotive industry. Here we will see the SWOT analysis of the company in detail. We will see the most crucial information about the company and how it has been spearheading the automotive industry not just in India but also across the world.
About Mahindra and Mahindra
Mahindra & Mahindra, a part of the Mahindra group, is one of the biggest vehicle manufacturers company based in India. Mahindra and Mahindra is a multinational automotive manufacturing corporation based out of Mumbai, Maharashtra. In 2018, the company was in the 17th position on the list of top companies in the country.
The company was incepted in 1945 by brothers MG Mohammed and J.C. & K.C. Mahindra.
Initially, it was a steel trading organization for 70 years in Ludhiana. The company had a joint partnership with Ford India Private Limited to manufacture passenger cars. But at present Mahindra manufactures a wide range of vehicles including three-wheelers, LCVs, as well as MUVs.
Let’s see the SWOT analysis of Mahindra and understand its weaknesses, strong points, opportunities as well as threats in detail.
Mahindra & Mahindra at a Glance
| Present CEO | Dr. Anish Shah |
| Year of Establishment | 2 October, 1945 |
| Annual Revenue (as of FY24) | ₹101,219 crore |
| Net Profit (as of FY24) | ₹10,718 crore |
| Origin | Mumbai, India |
| Type of Company | Public |
| Total no. of employees | 1,40,619 |
| Total assets (as of FY24) | ₹83,811 crore |
Products by Mahindra & Mahindra
Mahindra and Mahindra catals to different demands of its customers including manufacturing utility vehicles, farm equipment, commercial vehicles, etc. The company offers a wide range of products including –
- SUV
- Tractors
- Heavy & Light trucks
- Buses
- Two-wheelers
SWOT Analysis of Mahindra and Mahindra
Just analysis talks about the strong points, opportunities, and threats of the company against its rivals. So let us look at the sought analysis of Mahindra and Mahindra.
Strengths of Mahindra and Mahindra
The strengths of a company indicate the competitive advantage of the company to stay abreast of the competition and create higher value.
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Manufacturing leader in automotive segments
The company is a market leader and has high shares in tractors as well as in the utility vehicle sectors. Moreover, the company has a very strong market share in the passenger vehicle as well as commercial vehicle segment. This kind of strong market share offers a very competitive advantage to the company while assisting it to focus on continuous innovation and improvement.
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Research and development
The company has a very focused research and development section that constantly focuses on creating fresh products as well as technologies. The company has a high focus on value addition as well as value engineering strategies along with leveraging alternate materials and designing modularity etc.
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Reduced after-sale cost
Mahindra and Mahindra have a very competitive benefit on after-sale pricing as it is quite lower than the average industry rates. Not least, its vehicle’s spare parts can be easily found across the different regions of the country.
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Dynamic advertising and branding
The company’s advertisements are completely attractive and dynamic and are often on commercial TV products that help it engage a number of customers to create strong branding.
Weaknesses of Mahindra and Mahindra
Weaknesses are those areas of a company on which the company needs to work to succeed more. Below are the weaknesses of M&M-
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Dependence on the country
Mahindra & Mahindra is highly dependent on the huge amount of revenue getting from India that may affect its business in the case of uncertain situations like high inflation or economic downtime.
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Dependence on the automotive industry
The company receives a major part of its revenue from its automotive business. If any disruption occurs in the automotive industry then it will adversely affect the company’s revenue stream.
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Product recalls
Mahindra and Mahindra had numerous recalls of its products recently. In 2015, the company recalled XUV 500 which was manufactured in 2014. Such products may hamper the brand image in the market while also adversely affecting sales.
Opportunities for Mahindra and Mahindra
Opportunities are those areas where a company can make its growth.
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High demand for hybrid EV vehicles
There is a huge demand for hybrid electric vehicles across the globe and this demand is expected to grow at an average cagr of 20% in the next 5 to 6 years. Mahindra and Mahindra hold a very strong portfolio of hybrid electronic vehicles and are about to set a benchmark in the coming years.
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Developing Nations
Mahindra and Mahindra should also enter into the markets of emerging Nations across the globe having high potential. The company should also develop its worldwide footprint to capture the developing markets.
Threats to Mahindra and Mahindra
Threats are those areas that may negatively impact the business from the outside including factors like supply chain disruptions, recruit shortages, etc.
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Strict rules
Mahindra and Mahindra are connected with strict regulations by the environmental organizations and by the government as well in terms of noise standards, emission standards, etc. These regulations often change and increase the compliance cost for the manufacturing companies.
It is very essential to understand the threats to the companies as companies may become a victim of them while impacting their profit margins.
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Intense competition
Mahindra Group confronts intense competition in the automotive industry as well as in its other businesses. This puts intense pressure on the company while keeping the success ratios stagnant.
Top competitors of Mahindra
Here are the top five competitors of Mahindra and Mahindra –
Suzuki Corporation: Suzuki Motor Corporation manufactures motorcycles, outboard marine engines, automobiles, wheelchairs, etc along with a number of small internal combustion engines. It competes directly with Mahindra and Mahindra in the automotive sector.
Ford: Ford Motor Company is a multinational automobile manufacturer in the United States and competes with Mahindra and Mahindra in the automotive industry.
Bajaj Auto: Bajaj is an Indian conglomerate in the automotive industry. The company has headquarters in Pune and is a famous manufacturer of scooters auto rickshaws as well as motorcycles.
Tata Motors Limited: Tata Motors is another Indian conglomerate of the automotive industry and manufactures vans, trucks, passenger cars, buses, and coaches. IT companies directly with Mahindra and Mahindra in the automotive industry.
Ashok Leyland: It is another tough competitor of Mahindra and Mahindra and it is a multinational automotive manufacturer company in India.
Conclusion
Mahindra and Mahindra is a very unique company with a dynamic brand that has made itself strong with each passing year. The company’s consistent efforts, laser-sharp focus, and inclination toward innovation have contributed hugely to the company’s success. Mahindra and Mahindra have a very undeniable strong presence in the domestic market. The company is planning to bring further development in its manufacturing operations since there is a huge potential for it to maximize its operations as per its latest demand.
Mahindra and Mahindra’s marketing efforts are very dynamic – be it digitally or traditionally. The company presented a number of challenges during its journey but still, it has the strong potential to stay as one of the most trusted brands in the automotive industry.