With about Rs 1000 crore in fresh funding from outside investors, Mahindra & Mahindra is ready to go public with its wildly profitable Last Mile Mobility Business in the upcoming years.
Anish Shah, MD of Mahindra & Mahindra, presented the company’s capital markets strategy at the Q4 FY24 results call. He said Mahindra Accelo’s recycling division will probably be the first to realise its full potential in the capital markets. Shah stated that the Last Mile Mobility Business is anticipated to make its debut in the financial markets through an initial public offering (IPO) after this, however, he did not provide any precise dates for the same.
Under its last-mile mobility division, M&M sold more than 100,000 cars in the fiscal year 2023–2034. Rajesh Jejurikar, ED and CEO of Mahindra & Mahindra’s auto and agricultural business, stated that the company’s market share in the electric three-wheeler business has increased fourfold over the past two years.
“We have aggressive growth plans. So, there is work on the new-gen platforms and new products for the future. All the investment is going into creating capacity and products in the Zaheerabad ecosystem,” assured Jejurikar.
The Last Mile Mobility division sells electric three-wheelers and small mini trucks to cater to the booming e-commerce industry.
On taking questions on the impact of increased competition in the E3W category, Jejurikar said it was in the low double-digit growth.
“We believe the category penetration is only 11%. This category has the best chance to electrify because of a very strong customer value proposition. We believe the more players come in, the greater the opportunity to electrify faster. That will impact market share downwards, but we think it will fuel the pace of growth momentum in the category, which is very important,” he noted.
Last Mile Mobility said its recently launched Treo metal body three-wheeler has received a very good response.
Jejurikar further noted that the penetration of electric three-wheelers is likely to see an increase of 40-50% in the foreseeable future. “Now, when that happens, we expect market share to come down because there is already one new competitor, and we believe that together, we will get growth momentum going. So, we would expect market share to moderate to a reasonable level. But quantum growth in volumes is what we would expect,” he noted.
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