'Service outlets not stressed; utilisation full in big cities'

As several major carmakers struggle with a slowdown in India, Mahindra and Mahindra (M&M) has defied the trend with 20.4 per cent year-on-year (Y-o-Y) jump in domestic sales, reaching 209,148 units in the April-August period. NALINIKANTH GOLLAGUNTA, chief executive officer of M&M Automotive Division, spoke with Deepak Patel in an interview in Delhi. Edited excerpts:

- NALINIKANTH GOLLAGUNTA

Overall passenger demand has gone down in the last few months. However, companies like M&M and Toyota are performing well. Do you see the growth momentum to continue into next year?

We have put out guidance that we will see mid-to-high teen growth in the UV (utility vehicle) segment for the year. The festival season is expected to be a relatively good time for us. The high base effect could come at the tail end of this year for us as well but it is not going to impact the (aforementioned) overall guidance.

How do you want to expand your retail channel?

I want to split this question into two. There is a sales retail channel, and then there is a service network channel, which is also quite critical, especially for a product like XUV 3XO (launched in April). 3X0 is most likely going to be the primary car for the customer. So, the service must be done on the same day. Therefore, we are working to be present within a 5 to 7-km radius of our large customer bases in any urban area. We will add about 150-200 outlets (retail and service) this year, increasing them by about 15 per cent yearon-year. The company currently has 1,370 sales outlets and 1,100 service workshops.

Certain automakers, whose sales have grown significantly in the past few years, are now seeing their service network come under stress. Are you also seeing that stress?