Mahindra aims 13% growth in car sales
With only diesel vehicles on offer (except KUV100), Mahindra could have been affected badly due to the changes in norms announced in some Indian...
With only diesel vehicles on offer (except KUV100), Mahindra could have been affected badly due to the changes in norms announced in some Indian cities over the past few months. Ranging from complete ban on diesel car sales to paying 1% cess to govt on sale of each diesel car, Mahindra has seen it all.
Despite this, the Indian brand has revealed that they have not been affected as far as sales of their new cars is concerned. In fact, the company is aiming for a 13% growth this fiscal.
The Supreme Court offered relief over the earlier ban on diesel vehicles above 2000cc capacity and introduced a 1% additional cess on diesel cars which Mahindra and Mahindra state will be easily managed.
This 1% green cess on diesel cars will not put a damper on sales in any way. For eg, diesel vehicles under 2 liters also attract 1.5% extra excise duty. So it’s not that only vehciles with more then 2000 cc engine are affected. What is also playing in their favour is the increase in sales of large diesel SUVs in some states.
Mahindra and Mahindra have stated that the company will absorb a part of this 1% green cess while a portion will also be passed on to customers. Mahindra has also shifted focus to produce cars with less than 2 liter capacity engines, which can be seen in the case of the Scorpio and XUV500. Soon, even the Mahindra Xylo will receive the 1.99 liter cc engine.
Apart from this, added investment into petrol technology and electric and hybrid vehicles are on track. Importance will also be given to Bio and CNG technologies, even as Mahindra and Mahindra seeks to ensure that they have qualified engineers the deal with these new projects.
This article first appeared on Rushlane.com