Enterprise Comparison in Indian Auto: Tata Motors vs Mahindra

Strategic Performance Snapshot: Tata Motors vs Mahindra & Mahindra

A multi-dimensional analysis of 2024 data highlights contrasting strategies between Tata Motors' growth rebound and Mahindra & Mahindra's consistent operational efficiency. Visual comparisons across revenue, assets, size, and efficiency offer key insights into their financial positioning.

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Tata Motors vs Mahindra & Mahindra (2024): Scale vs Efficiency

In 2024, Tata Motors outperformed Mahindra & Mahindra in size metrics: total revenue (₹3,79,383 Cr vs ₹1,38,832 Cr), gross profit (₹1,10,553 Cr vs ₹43,185 Cr), net income (₹31,807 Cr vs ₹10,468 Cr), and profit before tax (₹42,011 Cr vs ₹13,843 Cr). However, Mahindra & Mahindra was more efficient operationally. It had lower asset turnover days (128 vs 164), inventory days (56 vs 77), and cash conversion cycle (47 vs 62), indicating better working capital management. Despite Tata’s scale advantage, Mahindra excels in operational efficiency, reflecting a leaner structure and quicker asset utilization in India’s automobile and components sector.

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Enterprise Comparison - Size

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Enterprise Comparison - Size

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Line Chart Summary – Size and Efficiency Trends (2016–2024)

The line charts compare Tata Motors and Mahindra & Mahindra on revenue, profitability, and operational efficiency from 2016 to 2024. Tata Motors showed strong revenue recovery post-2022, with net income peaking in 2024 after prior losses. Mahindra maintained steady profit and income growth. Tata’s inventory days spiked in 2023, severely affecting its cash conversion cycle, which turned deeply negative. However, its labor productivity surged in 2024 to 5.68 million USD/person, far exceeding Mahindra’s 0.24. Despite Tata’s historical volatility, recent trends highlight an aggressive turnaround, while Mahindra represents a stable and consistent performer with balanced working capital and modest productivity.

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Enterprise Trend - Efficiency

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Enterprise Trend - Efficiency

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In 2023, Tata Motors experienced an anomalous surge in Inventory Days and a record-negative CCC due to heavy inventory build-up—possibly tied to JLR integration, dealer stocking, or supply chain delays. Simultaneously, the CCC skewed massively negative (–365 days), meaning the company was collecting cash far sooner than paying suppliers—likely through extended terms and rapid customer receivables, especially in its Jaguar Land Rover operations.

On the revenue and profitability front, the surge was driven by strong volume growth across Tata India’s Vehicle segments (+45% PV, +21% CV) and a significant one-off JLR pension credit (~₹1,495 crore). These factors together explain the pronounced spikes in operating and net income observed in 2023.

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Spider Chart Summary – Size-Based Performance Comparison (2024)

The bar charts illustrate the revenue and asset structure of Tata Motors and Mahindra & Mahindra in 2024. Tata Motors allocated 65.74% of its revenue to COGS, with higher investment in R&D (6.27%) and taxes (7.31%) compared to Mahindra. Mahindra spent more on SG&A (14.59%) and had higher irregular expenses. On the asset side, Mahindra had 50.68% of assets as receivables, while Tata maintained better liquidity with higher cash (10.80%) and investments. Tata also invested more in intangibles and inventory. These structural differences indicate distinct operational strategies: Mahindra favors aggressive receivables, whereas Tata focuses on liquidity and innovation.

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Enterprise Breakdown - Revenue

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Enterprise Breakdown - Revenue

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🚘 Tata Motors vs. Mahindra & Mahindra: 2016–2024 Overview

1️⃣ Financial Growth Comparison

Metric (Million USD)	Tata Motors (2024)	Mahindra (2024)
Total Revenue	52,000	15,000
Operating Income	~3,000	~1,700
Profit Before Tax	2,800	2,000
Net Income	3,500	1,500

📈 Tata Motors leads in revenue and income metrics, particularly from 2023 onward.
🔄 Mahindra & Mahindra shows stable, year-on-year growth, with lesser volatility.

2️⃣ Operational Efficiency Metrics (2023)

Metric	Tata Motors	Mahindra
Inventory Days	497.15 days	82.42 days
Cash Conversion Cycle	–365.06 days	–11.72 days
Labor Productivity	5.68 USD/person	0.24 USD/person
Payable Days	52.46 days	7.96 days

🔍 Tata showed massive spikes in inventory, productivity, and CCC efficiency in 2023.
🧩 Mahindra maintained a consistent and efficient cycle, reflecting operational discipline.

📅 Detailed 2023 Analysis: What Happened at Tata Motors?

In 2023, Tata Motors exhibited a dramatic turnaround driven by:

🔼 1. Revenue Surge & Profitability

Revenue jumped to $52B; net income rose to $3.5B.
Boosted by:
- Strong domestic passenger vehicle demand
- Recovery of Jaguar Land Rover (JLR), with China sales rebounding
- Strategic pricing, cost optimization, and premium EV launches
- One-time actuarial pension gain (~$1.9B) recorded in Q4 FY23

🏭 2. Operational Behavior

Inventory Days jumped to 497.15 → suggests strategic stockpiling or ramping up capacity
CCC dropped to –365 days → indicative of longer supplier credit terms, or higher upfront collections
Labor Productivity rose to $5.68/person, driven by automation, scale and global efficiencies

🔗 Source-backed Business Factors:

Tata Motors FY23 Annual Report & JLR quarterly reports

Strong demand for EVs like Nexon EV, and high-margin models

Shift to premium vehicles and export growth

Cost control via Tata's "Turnaround 2.0" strategy

⚖️ Key Takeaways: Tata vs. Mahindra

Aspect	Tata Motors	Mahindra & Mahindra
Growth Style	Volatile but explosive (esp. 2023)	Gradual and sustainable
Risk Exposure	High (JLR dependency, global volatility)	Moderate (domestic-focused)
2023 Peak Factors	One-time gains + EV growth + JLR rebound	NA (no major spikes observed)
Efficiency	Peaked in 2023 but with anomalies	Stable, operationally controlled

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