Mahindra To Launch 16 New SUVs, BEVs

Mahindra has made some big announcements at a recent investor meet – New car launches, Investments, Increase in Production

In a recent shareholder meeting, Mahindra & Mahindra Ltd. disclosed its strategic roadmap for the coming years, highlighting a significant expansion in their automotive product portfolio. According to the presentation, Mahindra plans to introduce a total of 23 new vehicles by 2030. This includes 9 Internal Combustion Engine (ICE) Sports Utility Vehicles (SUVs), 7 Battery Electric Vehicles (BEVs), and 7 Light Commercial Vehicles (LCVs).

Mahindra Roadmap 2030

The nine ICE SUVs will feature three mid-cycle enhancements, including the recently launched XUV3XO, along with six all-new models. This move indicates Mahindra’s dedication to maintaining a strong presence in the traditional automotive market while ensuring that their offerings remain fresh and competitive.

In the electric vehicle segment, the seven BEVs represent a significant push towards sustainable mobility. Mahindra has already revealed some of its next-gen EV range that includes XUV.e8, XUV.e9, BE.05, BE.07 and BE.RALL-E. Thar.e and BE.09 are also under development. This initiative aligns with global trends and regulatory pressures favouring the reduction of carbon emissions. Mahindra’s focus on electric vehicles will cater to the growing demand for eco-friendly transportation solutions.

The seven LCVs will be a mix of five ICE and two electric vehicles, specifically targeting the sub-3.5-ton segment. This diversification reflects Mahindra’s strategy to address different market needs, from traditional fuel-powered vehicles to more sustainable electric options.

Increase In Production Plans By FY27

The capacity planning chart provided by Mahindra outlines a clear trajectory for growth. As of Fiscal Year 2020 (F20), the company’s overall SUV production capacity stood at 19,000 units per month. By the end of Fiscal Year 2023 (F23), this capacity more than doubled to 39,000 units. The growth momentum continues, with projections showing a capacity increase to 49,000 units by the end of Fiscal Year 2024 (F24).

The most significant leap is anticipated in Fiscal Year 2025 (F25), where the overall SUV capacity is set to reach 64,000 units per month. This jump includes a dedicated increase in SUV capacity by 5,000 units for models like the THAR 5D and XUV3XO/400, alongside an additional 10,000 units specifically for electric vehicles (EVs). By the end of Fiscal Year 2026 (F26), Mahindra aims to achieve a total production capacity of 72,000 units per month.

The company is not only focusing on increasing the production of popular ICE models but also significantly investing in EV manufacturing capabilities. By the end of F26, Mahindra expects to add another 8,000 units to its EV capacity, reflecting the company’s strategic pivot towards sustainable mobility solutions. The projected figures represent a remarkable 3.5 times increase in production capacity from F20 to F26, highlighting Mahindra’s proactive approach to scaling operations and addressing future market needs. This capacity boost will enable the company to cater to a wider audience, ensuring timely delivery and availability of its diverse range of vehicles.

Investment Plans

SUV ICE Development: Mahindra plans to invest Rs 8,500 crore in the development and enhancement of its Internal Combustion Engine (ICE) SUV lineup. This substantial allocation underscores the company’s dedication to maintaining a competitive edge in the traditional SUV market.

Commercial Vehicles (CV): An investment of Rs 4,000 crore is earmarked for the commercial vehicle segment, which includes electric vehicles (EVs) and Mahindra Truck and Bus Division (MTBD). This investment reflects Mahindra’s strategy to diversify its product portfolio and strengthen its position in the commercial vehicle market.

Sustenance: To ensure ongoing operations and maintenance, Mahindra has allocated Rs 1,500 crore. This funding will support the sustenance of existing projects and operations, ensuring seamless continuity and operational efficiency.

Total Auto Investment: The total investment in the auto sector over the F25-F27 cycle is projected to be Rs 14,000 crore. This comprehensive plan includes both traditional and electric vehicle segments, highlighting Mahindra’s balanced approach towards future growth.

Investments in MEAL: An additional Rs 12,000 crore is set aside for investments in Mahindra Electric Automobile Limited (MEAL). This significant allocation emphasizes Mahindra’s strategic shift towards electric mobility, aligning with global trends towards sustainable transportation solutions.

The combined investments for new products and capacity expansion, including both auto and MEAL, total Rs 26,000 crore. This massive investment is aimed at developing new models, enhancing manufacturing capabilities, and ensuring Mahindra’s readiness to meet future market demands. Mahindra has also allocated Rs 1,000 crore for investments in other subsidiaries. This allocation will support the growth and development of Mahindra’s broader business ecosystem, ensuring holistic growth across the company.