By Akbar Merchant
Mahindra & Mahindra expects to sell around 7,000 electric vehicles a month by the end of the current fiscal, and is targeting EVs to contribute 20–25% of its overall SUV portfolio by 2027–28, Executive Director and CEO for the auto and farm sectors Rajesh Jejurikar, said on Thursday.
The company currently sells 4,000–5,000 electric vehicles a month and is scaling up production and retail infrastructure to support the next phase of growth. “We are moving to an operating production capacity of electric vehicles to 8,000 units per month by fiscal end, out of which we hope to sell 7,000 units a month,” Jejurikar said. He added that EV penetration in the SUV portfolio is set to rise sharply from the present 8.7%. “We see 20–25% of our SUV portfolio being EVs by 2027–28.”
The company on Thursday expanded its EV line-up with the launch of the seven-seater XEV 9S. Jejurikar said the company is gradually enhancing its retail and workshop footprint to match EV sales growth. “We are expanding service capacity by 15–20% annually, both through new centres and digital productivity improvements,” he said.
Mahindra has sold over 30,000 EVs (BE 6 and XEV 9) over the past seven months, generating roughly Rs 8,000 crore in revenue. All its born-electric models are produced at its Chakan plant, which is now ramping up output to meet demand.
On exports, Jejurikar said the approach would remain phase-wise rather than aggressive. “We have an overall path to exports for the electric SUV portfolio but we will do it in a calibrated manner. We have said right hand markets first and then depending on the response we will look at the left hand markets. It’s not something we will rush into,” he said.
The company is also working on an end-of-life roadmap for batteries.
Jejurikar said that Mahindra is de-risking its EV operations from supply chain challenges through multiple mitigation actions. He said all trims of the XEV 9S are eligible under the government’s production-linked incentive scheme. “There is a very comprehensive process the government has put in place to validate the local value addition. This means any company which is applying for a PLI has to demonstrate local value addition not only at the first point of supply, but all the tiers of supply,” he said. The company will file a PLI application for the BE 6 in the coming quarter.
On positioning of the new model, Jejurikar said the XEV 9S is designed to attract buyers specifically seeking a seven-seat EV, and overlap with the XEV 9E will not be a concern. “Manufacturers shouldn’t obsess over cannibalisation. Our job is to give customers choice and let the best product win. If more people buy the seven-seater, we are delighted; if they choose the five-seater, we are equally delighted, as long as they stay within our family,” he said.
He expects strong traction from northern markets, particularly Delhi and Punjab. For retail presence, Mahindra will continue selling EVs alongside ICE models as Jejurikar said customers prefer comparing both in the same showroom.
