Renowned Indian industrialist, Anand Mahindra’s response to Tesla’s CEO Elon Musk’s proposition that says motor vehicle production is a very tough task and also generating a positive cash flow is even much harder as compared to producing cars. “And we’ve been doing that for decades now. Still sweating & slaving away at it. It’s our way of life…” Mahindra says. On this Tuesday Elon Musk replied to a story related to a tech company that spoke about Dyson’s failed attempt. James Dyson’s new book is all about his company Dyson’s attempt to make an electric car which was not a success, and he said that large legacy automakers sell their cars at very low to zero margins.“Most of their profit is selling replacement parts to their fleet, of which 70% to 80% are past warranty,” Musk added.
He gave an example of razors and blades to put his argument forward and said “New car companies lack this advantage. Also lack sales & service infrastructure.” Last week M&M reported a 17% increase in the domestic passenger vehicle sales at 15,973 units in August as compared to the same month in the last year. The Mahindra & Mahindra company had sold units in August 2020 as per their reports and Twitter users also praised the company’s resilience in face of adversity. A Twitter user also said, “Only visionaries have the guts of doing so and that too with so much passion that can be seen in the impact it created amongst the society.” Another Twitter user also praised Elon Musk’s entrepreneurial tenacity by saying “Citing the zero or low margins of legacy carmakers, big car companies make their profits not from the sales of their cars but from the sales of replacement parts like razors and blades…Well Said.”
Well, Elon Musk while sharing the excerpt wrote “Production is hard. Production with positive cash flow is extremely hard.” While agreeing with the tesla chief Anand Mahindra wrote “You said it, @elonmusk.” currently the tweet has got more than 4000 likes and a ton of comments to read. Musk has yet to respond to Mr. Mahindra regarding his to eat and he highlighted new car companies like the advantage of selling replacement parts with the high-profit margin set. Will Anand Mahindra main thing that Elon Musk’s Tesla will not be able to match up to all the desi cars made in India but there is also at least one aspect of car making that both the two businessmen are agreeing to and this news has been trending for a while now. The response to the tweet made by Elon Musk on car production by the chairman of Mahindra group is what made headlines because it’s hard to see two business tycoons agreeing to one particular topic.
