Mahindra plans to double electric SUV capacity over next 5 years

Mahindra is planning to double its electric vehicle production capacity over the next five years. The homegrown automaker said this on Thursday after reporting a 34% year-on-year(YoY) jump in consolidated Profit After Tax (PAT) in the first quarter. The surge in profit was driven by robust demand. Mahindra, which currently sells electric cars like the BE 6, XEV 9e, and XEV 9S, announced that the XEV 9S, which is essentially the all-electric iteration of the XUV 7XO and the range-topping as well as most practical electric SUV from the brand, became the best-selling electric car in India by dethroning the MG Windsor EV. Buoyed by the success, the auto OEM is currently aiming to ramp up the production capacity to cater to a larger number of consumers, and eventually boost its market share.

The auto company is looking forward to enhancing its overall SUV production capacity as well, to 82,000 units per month in the second half of FY27 and 92,000 units by the end of FY28.

This announcement came at a time when India's passenger vehicle manufacturers are accelerating investments in electric vehicles as consumer adoption is growing fast and emissions norms are tightening. In such a situation, Mahindra is betting big on a broader model lineup to challenge rivals such as Tata Motors and Hyundai.

Speaking about the future strategy, Anish Shah, Managing Director and CEO of the company, said that electric vehicles are going to be a key driver for the company's growth over the next few years. "We're doubling EV production capacity, and that's going to be a key driver of growth over the next few years," he said.

Mahindra's electric SUV penetration in the last quarter reached 12%. The company's auto sales were driven by a 15% SUV volume growth in the last quarter. "We continue to be the number one SUV player from a revenue market share standpoint. E-SUV penetrations at 12% now, a very healthy number and a very rapid growth over the last year," said Shah. ​

Mahindra records 6.8% rise in Q1 FY27 profits

Mahindra reported a 6.8% rise in its first-quarter profit that was driven by robust demand across different segments. Demand in the last quarter stayed strong, lifting the company's consolidated profit after tax to ₹5,455 crore in the last quarter, marking a 34% YoY growth over Q1 FY26, when it posted a net profit of ₹4,083 crore. Revenue in the last quarter stood at ₹58,188 crore, up 28% from ₹45,529 crore in the year-ago period.

The auto OEM projected mid-to-high-teens growth for the SUVs segment and high-single-digit growth for the commercial vehicles segment. The tractor business, which is a key revenue churner for Mahindra, maintained a 5% growth guidance for FY27. "Despite a quarter marked by macro headwinds…The strength of our diversified portfolio coupled with proactive actions to navigate through this challenging environment has enabled us to deliver strong results. Our Auto and Farm businesses continued to strengthen their leadership positions, despite this dynamic environment," said Shah.

The company said that auto and farm segments continued to deliver on growth and margins, with profits rising 18% YoY in the last quarter. During the quarter, the company sold a total of 304,000 vehicles, registering a growth of 23% YoY, it said, adding that the SUV volume touched 175,000 units. The company's tractors business gained 280 basis points on a sequential basis to reach 44.9% market share in Q1 F27. "Auto and tractor business demonstrated strong resilience in Q1 F27. We have achieved a QoQ increase of 50 bps in SUV revenue market share and 150 bps in LCV (< 3.5T) volume market share. XEV 9S emerged as the highest-selling EV in India by volume," said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd, while also adding, “Auto business PBIT (profit before interest and tax ) margin excluding eSUV contract manufacturing is 8.3% and core tractor PBIT margin is 19.2% despite commodity inflation."

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