Homegrown automajor Mahindra & Mahindra Limited (M&M) announced on Monday that its Japan-based associate Mitsubishi Mahindra Agricultural Machinery (MAM) has decided to withdraw from the agricultural machinery business. MAM plans to cease the production and sale of agricultural machinery by the first half of fiscal year 2027.
MAM plans to dissolve and proceed with liquidation, but will continue to supply spare parts to existing customers.
The decision by Mahindra comes as MAM continues to incur losses despite multiple structural measures aimed at restoring profitability. “After detailed assessment of the business’ long‑term viability and financial sustainability, MAM has determined that sustaining the business in a stable manner going forward would be challenging,” said Mahindra & Mahindra in a regulatory filing.
MAM’s revenue from operations in FY25 was Rs 2,094.17 crores and after elimination of intercompany transactions with the Mahindra Group, it contributed Rs 1,786.03 crore or 1.13% to the consolidated turnover of the company. According to M&M, the net worth of MAM as on 31st March 2025 was negative Rs 17.74 crores.
On completion of the liquidation procedure, the promoter group would not have to incur the annual loss as well as funding these losses. MAM is a joint venture between Mahindra & Mahindra and Mitsubishi Heavy Industries under the Mitsubishi Group.