Policy triggers add vroom to M&M's future

Agri loan waiver, good monsoon and GST will help it grow at a faster pace

Multiple triggers in the form of farm loan waivers, lower goods and services tax (GST) rates for sports utility vehicles (SUVs) and the recent Cabinet nod to government employee allowances as part of the Pay Commission recommendation are positive for Mahindra and Mahindra’s (M&M’s) two segments of automobiles and farm equipment. A majority of the triggers pertain to the government’s policies, especially for the rural markets, which will immensely benefit the company’s sales of tractor and utility vehicles (UVs).

Farm loan waivers by various state governments, both announced and expected, are a major driver, as these states account for up