New Delhi: Mahindra Group Chairman Anand Mahindra, who is active on social media, responded to Tesla CEO Elon Musk’s view on car production and agreed that it is a tough job and having positive cash flow is even more difficult. He also added a punch to the tweet, “And we’ve been doing this for decades. Still sweating and getting away with it.
“It’s our way of life…” said Anand Mahindra.
Elon Musk tweeted on Tuesday in response to a story about British tech company Dyson’s failed attempt to build an electric car, saying the big legacy automakers sell their cars for less than a real margin.
“Most of their profit is selling replacement parts in their fleet, of which 70% to 80% are past warranties,” Musk said. Musk also gives an analogy of razor and blade to back up his ideas. “New car companies lack this advantage. Plus there’s a lack of sales and service infrastructure,” Musk says.
The Indian business tycoon seems to have agreed with Musk, but he also spoke about how the automaker is trying to overcome these challenges. Mahindra & Mahindra reported a 17 per cent growth in sales of passenger vehicles in the domestic market in August as compared to the previous year. The company recently launched the XUV700, which has emerged as its most promising vehicle with a host of luxury features along with a capable drive performance. Mahindra cars have performed well in the safety tests as well.
However, global shortages in critical parts pose challenges for automakers. Mahindra also announced a production cut for this month, manufacturing of the XUV700 may remain unaffected, with the supply of other models likely to be affected. This issue is not limited to Mahindra only, but most of the OEMs both in India and the world face this issue.
Car Loan Information:
Calculate Car Loan EMI