Mahindra & Mahindra (M&M) is sticking to its guidance of double-digit growth in its SUV business, reaffirming a mid-to-high teens volume growth outlook for FY26, backed by a flurry of upcoming launches.
These include two all-new electric SUVs in Q1 of 2026, lower battery pack variants of existing electric models BE 6 and XEV 9E, and multiple ICE product upgrades and refreshed variants such as the XUV 3XO REVX and Scorpio-N.
Despite a tough macroeconomic environment and softening urban demand, the company expects this robust pipeline to sustain momentum.
Speaking at the Q1 FY25 earnings call, Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sectors) of Mahindra & Mahindra, said the company remains confident of achieving its growth targets due to a combination of strong product cadence, rising EV adoption, and stable rural sentiment.
“We stay with our guidance. We believe we will achieve this because we have two new electric SUVs coming in early 2026, and have already launched refreshed variants like the XUV 3XO REVX and updated Scorpio-N. More tactical launches are scheduled over the next few months,” Jejurikar said.
Mahindra is betting on its refreshed internal combustion engine (ICE) portfolio and a stepwise ramp-up in electric models to drive growth. The company has witnessed a significant uptick in EV penetration—electric SUVs now account for nearly 8% of its total SUV portfolio, with an e-SUV market share of 31%.
Upcoming Launches and Capacity Plans
The automaker is gearing up for an aggressive product rollout over FY26 and FY27. A new platform will be unveiled on August 15, and further clarity on the full portfolio is expected during an investor meeting in November.
While Mahindra is evaluating a greenfield plant, it has confirmed that initial ramp-up will be managed through increased output from its existing Chakan facility, where utilisation currently stands at ~80% for ICE and ~70% for EVs.
Jejurikar highlighted that the company’s EV production will scale from 4,000 units per month to 5,000–6,000 units by the festive season. A further ramp-up is planned following the launch of two new EVs in early 2026, along with more accessible lower pack variants targeting value-conscious customers.
EV Strategy and PLI Status
The company has already qualified for PLI (Production-Linked Incentive) benefits under the Inglo platform and expects to start accruing benefits for the XEV 9E in Q2 or Q3 of FY26. A separate application for BE6 is expected in Q4 FY26.
“What’s notable is that the EBITDA performance of our e-SUV business is without factoring in any PLI benefits. Leveraging existing Mahindra assets has given us a significant cost advantage,” Jejurikar added.
Mahindra’s electric range is attracting a newer customer demographic. It has the highest share of women buyers across its portfolio and strong Net Promoter Scores reflecting positive ownership experiences.
Export Growth and Sentiment Outlook
Mahindra is also seeing early export success with the 3XO in South Africa and Australia, targeting over 1,000 units per month in international markets. Domestically, while urban demand remains subdued, the company expects sentiment to improve with the onset of the festive season, strong rural traction, and potential interest rate softening.
“We’ve consistently demonstrated our ability to manage risks and deliver on our commitments. Unless there is a significant deterioration in the macro environment, we are confident of delivering mid-to-high teens growth,” Jejurikar asserted.