JOIN US‘Our way of life’: Anand Mahindra responds to Elon Musk on difficulty in car production
Reacting to Tesla CEO Elon Musk's statement that motor vehicle production is hard but generating a positive cash flow is even harder, Mahindra Group Chairman Anand Mahindra said his company has been doing that for decades now.
"Still sweating & slaving away at it. It’s our way of life..." Mahindra tweeted.
You said it, @elonmusk And we’ve been doing that for decades now. Still sweating & slaving away at it. It’s our way of life… https://t.co/EGpcyKrRhF
— anand mahindra (@anandmahindra) September 7, 2021
Musk, the CEO of the world's most valuable automaker by market capitalisation on Monday reacted to a British tech company Dyson's failed attempt at building an electric car.
"Large incumbent carmakers sell their cars at low to zero true margin," Musk said.
Large incumbent carmakers sell their cars at low to zero true margin. Most of their profit is selling replacement parts to their fleet, of which 70% to 80% are past warranty.
— Elon Musk (@elonmusk) September 6, 2021
Like razors & blades.
New car companies lack this advantage. Also lack sales & service infrastructure.
As demand for the Indian automaker's passenger vehicles and tractors improved, Mahindra and Mahindra Ltd reported a profit for the first quarter on Friday.
The Anand Mahindra-owned company said it sold 85,858 vehicles during the first quarter, registering a growth of 190 per cent, while its tractor sales jumped 52 per cent from a year ago when the first wave of the Covid-19 pandemic triggered a nationwide lockdown.
(With PTI inputs)
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