08 Apr , 2025 By : Debdeep Gupta
Shares of Mahindra and Mahindra (M&M) gained over 2 percent to Rs 2,548 on April 8 after the company announced the incorporation of a wholly owned subsidiary named Mahindra Advanced Technologies Limited (MATL), with a total subscription of Rs 5 crore.
MATL is established under the manufacturing and allied services category and is set to concentrate on technologies related to security. The formal incorporation of the new entity was completed on April 7, 2025, in Mumbai, Maharashtra, following board approval which had been granted earlier on February 7, 2025.
M&M has subscribed to 50 lakh equity shares of Rs 10 each at par value in this newly formed entity, resulting in complete ownership—100 percent stake—in MATL.
During FY25, M&M recorded a significant rise in sales, reaching 5.13 million units, a notable increase from 4.27 million units sold in FY24. This exceptional growth in sales propelled M&M’s market share from 10.79 percent to 12.34 percent, placing the company within close range of overtaking Tata Motors to secure the third position in India’s highly competitive passenger vehicle (PV) market.
Additionally, M&M’s market share in the electric vehicle (EV) segment also rose to 7.60 percent in FY25, compared to 6.69 percent in the previous year.
In contrast, rival automakers experienced marginal to moderate declines in market share. Maruti Suzuki saw a slight dip in its market share from 40.60 percent to 40.25 percent. Hyundai Motor India recorded a sharper decline, with its market share falling from 14.21 percent to 13.46 percent. Tata Motors also experienced a contraction in market share, decreasing from 13.62 percent to 12.90 percent.
According to UBS, M&M’s vehicle volumes are projected to grow by 9 percent in FY26, even as the broader automotive industry is expected to see a more modest expansion of just 2 percent. The brokerage attributes M&M’s projected outperformance to strong demand in the SUV segment, as well as a slate of upcoming EV launches.
UBS further anticipates that M&M will roll out additional SUV models in FY26, further boosting its market presence.
The brokerage also highlighted that M&M’s farm equipment division, which contributes 40 percent to the company’s earnings before interest and tax (EBIT) and accounts for 30 percent of the sum-of-the-parts (SOTP) valuation, continues to perform well. This segment is reportedly facing no immediate challenges related to technology changes or regulatory hurdles.
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