Mahindra and Mahindra’s woes do not seem to be coming to an end. While Indian market posed challenges for all its automobile products like tractors, utility vehicles and two-wheelers due to slowdown in the rural economy and challenging business environment, robust growth in export market is now at risk.

On the sidelines of the launch of the new variant of the New Age XUV500, Pravin Shah, President & Chief Executive (Automotive), at Mahindra and Mahindra, expressed caution on the demand in the export market.

He said that other exporting countries like Japan, Korea and some European countries are gaining due to long-term free trade agreements signed between the two countries unlike India.

Additionally, falling commodity prices and higher currency depreciation of other exporting countries act as hurdles. “The way the rupee has stabilised after depreciating to 65-66, same thing has happened in other countries as well. So it is a double aged sword,” he said.

Africa and South America are the top export markets for M&M’s automotive division. Exports jumped 32 per cent year-on-year and formed 7.75 per cent of total volumes in April-October period. In its FY15 annual report, the company had forecasted its automotive exports to pick up pace in this financial year, which till now has held true.