Anand Mahindra replied to a tweet by Elon Musk.
Anand Mahindra May Think Elon Musk’s Tesla Can’t Match Ours Native Cars, but there is at least one aspect of carmaking on which two business tycoons agree – that it is hard. On Tuesday, Mahindra Group Chairman responded to a tweet by Elon Musk on car production, in which he agreed that production is tough and production is even tougher with positive cash flow. Still, Mr Mahindra said, it had become a way of life for him after decades of “sweat and slavery”.
It all started when Elon Musk, CEO of the world’s leading electric car manufacturing company, shared an excerpt from James Dyson’s new book about his company Dyson’s failed attempt to build an electric car.
Sharing the excerpt, Elon Musk wrote, “Production is tough. Production with positive cash flow is extremely difficult.”
Anand Mahindra agreed with the Tesla chief but added that the carmaker is moving ahead despite several challenges. “You said it, @elonmusk,” he wrote. “And we’ve been doing this for decades. Still sweating and getting away with it. It’s our way of life…”
you said it, @Elon Musk And we’ve been doing this for decades. Still sweating and getting away with it. It’s our way of living… https://t.co/EGpcyKrRhF
— anand mahindra (@anandmahindra) September 7, 2021
The tweet has garnered over 3,800 ‘likes’ and over a ton of comments.
While Elon Musk is yet to respond to Mr Mahindra, he did highlight how new car companies lack the advantage of selling replacement parts with higher profit margins. New manufacturers also lack service and sales infrastructure.
“Large existing carmakers sell their cars at less than zero actual margin. Most of their profit is selling replacement parts in their fleets, of which 70% to 80% are past warranties,” Elon Musk said in a follow-up to his own. wrote in the tweet. . “New car companies lack this advantage. Also there is a lack of sales and service infrastructure,” he said.
Last week, Mahindra & Mahindra reported a 17 per cent growth in domestic passenger vehicle sales in August as compared to the same month last year.
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