Mumbai-headquartered automotive major Mahindra & Mahindra has announced its financial results for FY2025 with revenue of INR 1,592 billion, up 14 percent YoY and a net profit of INR 129 billion, up 20 percent YoY.

The robust financial performance was underpinned by strong automotive sales across key segments. Mahindra stated it continue to top the SUV sales with a revenue market share of 22.5 percent. Furthermore, the OEM held the top spot in the Light Commercial Vehicle (LCV) segment under 3.5 tonnes, commanding a market share of 51.9 percent. The Tractor division also achieved its highest ever full-year market share at 43.3 percent.

Going forward, the company continues to maintain an optimistic outlook for SUV and EV sales. The company has announced that it will unveil a new platform 'Vision' on 15 August 2025, which will further expand its product portfolio.

Furthermore, Mahindra is set to increase its manufacturing capacity for XUV 3X0 and Thar Roxx by 3,000 units, a new platform capacity in Chakan for 120,000 units per annum and a new greenfield facility by FY2028, which will primarily focus on the passenger vehicle segment. The company is also looking at different states and the kind of incentives it gets, before finalising the location.  

“Our current capacity utilisation on the SUV side is almost over 90 percent with Scorpio very close to capacity, Thar Roxx and 3X0 fully on capacity and Bolero is lesser in capacity,” said Rajesh Jejurikar, Executive Director & CEO – Auto and Farm Sector, Mahindra & Mahindra.

Furthermore, the company’s born electric platform, which has spawned the BE 6 and XEV 9e has recently crossed the 6,300 sales mark. At present, the EVs have around 40,000 bookings with an average waiting time of 4-5 months.

Jejurikar explained that an EV customer usually sees around 2 hours of discussion time at the dealership, which is significantly higher than that of an ICE-vehicle customer.

“There's also work to be done by way of enabling charging infrastructure to be facilitated, set up, which means working with their societies or their office complexes wherever they want the charger and all of that needs to be coordinated well and then there's an installation process to be done at home. We have seen that this process is very important to customers to make sure that the experience is very seamless. As we think about ramping up, this is an added thing over and above the input quality which of course is a very important parameter because there is a lot of high tech and so we want to be very calibrated in the way we ramp up. As we have said earlier, that even though we have capacity, we are not operationalising all of that,” added Jejurikar.

A significant highlight was the positive performance of Mahindra's EV division. The company reported being EBITDA positive in the first quarter of the fiscal year within its EV segment, even without considering certain incentives (PLI). This achievement was attributed to a favourable variant mix. While celebrating this milestone, the company cautioned that achieving EBIT margin positivity in the EV sector is anticipated to take several quarters, potentially extending to a year or 18 months. This timeline reflects the ongoing investments required to scale up their EV operations, for which incentives are intended to provide support. The company anticipates that significant EBITDA positivity in the EV segment will become more pronounced as production volume increases.

On the other hand, responding to slowdown in the passenger vehicle sales, Jejurikar stated, “I think there are several enablers which will start kicking in – government spending, infrastructure spending, all of that which will lead to demand picking up. The smaller segments will start gaining out of the income tax benefit that will start kicking in from the front. We think that will be an enabler as well as interest rates come down over time, I think that will be another positive enabler. I do think that over the next few months, the sentiment will start kicking up. But it's a world with a lot of uncertainty at the moment. Multiple things are happening around the world so we don't see any uncertainty that comes out of that.  But, overall I think many macroeconomic factors are positive.”

Dr Anish Shah, Managing Director, Mahindra & Mahindra, added, “I just want to reflect on the numbers – both revenue growth and bank growth – where the stress isn't particularly visible. Yes, there is some level of commercial urban stress, but from our product standpoint, we haven't seen significant impact. Even when we look across other businesses, overall, the picture remains positive. The recent actions around liquidity and interest rates should start to drive greater demand and improved functionality. So, on balance, I’d say we aren’t seeing substantial urban stress at this point – perhaps a slight slowdown or a temporary blip, but nothing major. I believe that's something we’ll bounce back from.”

Looking beyond the domestic market, Mahindra expressed considerable optimism regarding its expansion in North America. The launch of the OJA tractor series in the North American market is reported to be gaining significant traction. Specifically, in the less than 110 horsepower tractor segment, where Mahindra has a strong presence, their retail market share has reportedly surged from 3 percent to 10 percent over the past four months. This sub-110 horsepower category constitutes a substantial 40 percent of the total market volume. This significant growth in their key segment underscores the strategic importance of the OTA series and justifies the investments made in its creation.

Responding to a question regarding potential entry into the insurance market, a Dr Shah stated that this has been under consideration for several years. While acknowledging the complementary nature of their existing business and the large market size, he indicated that any entry would be contingent on identifying a suitable approach that ensures successful returns. But no immediate plans for entering the insurance sector were announced.

Going forward, Mahindra is said to be open to new partnerships and acquisitions.

Comments (0)

ADD COMMENT

Link Copied!

Mahindra and Mahindra is preparing to roll out four new products for its SUV portfolio and one light commercial vehicle in the first half of calendar 2027 as the automaker looks to sustain growth through a pipeline of new models and a significant expansion in production capacity.

The five planned launches will comprise a new product based on the company's new NU-IQ platform, an all-new battery electric vehicle, a lifestyle vehicle and one product refresh alongside a new LCV, informed Executive Director and CEO, Auto and Farm Sectors, Rajesh Jejurikar during the company's Q2 FY27 earnings call.

The product pipeline comes as Mahindra continues to face capacity constraints amid strong demand for its SUV portfolio. The company said it was operating at or above its available production capacity with October production exceeding the monthly capacity it had indicated for the end of September.

Mahindra began FY27 with SUV production capacity of around 64,500 units a month. This is expected to increase to 82,000 units a month by the end of the current financial year followed by 92,000 units in the next financial year. The company is targeting capacity of 132,000 units a month by the exit of FY31 as a new plant comes upstream.

Jejurikar also confirmed that the company was progressing with its Nagpur project. “We are on track for setting up the Nagpur project. We got the parcel of land and work is starting very shortly on that,” he said, adding that the facility would support the rollout of new products according to the schedule presented by the company.

Capacity expansion to support SUV growth

Mahindra reported 26 percent year-on-year growth in SUV volumes in the second quarter, while volumes for the first half increased 20 percent. However, the company said its sales performance continued to be constrained by production capacity.

At the end of September, its monthly capacity was around 61,000 units for internal combustion engine products and 8,000 units for electric vehicles. Jejurikar said the company had produced more than this indicated capacity in October reflecting the strength of demand.

The company maintained its expectation of mid-to-high-teen growth in its SUV business during FY27 with additional capacity expected to support volumes.

The company is also expanding its electric vehicle ecosystem. It had established 49 ultra-fast charging stations covering around 12,000 kilometres of highways with charging facilities available approximately every 200 kilometres on the covered routes. Mahindra and Mahindra plans to increase this network to 215 stations by the end of calendar 2027.

Commodity inflation puts pressure on margins

The expansion and product pipeline come against a backdrop of elevated input costs. The company’s earnings presentation highlighted year-on-year increases of 42 percent in copper prices, 40 percent in rubber and 17 percent in steel.

Despite these cost pressures, Mahindra reported 25 percent growth in revenue and profit after tax in Q2 FY27. Revenue stood at INR 575.53 billion, while PAT was INR 45.88 billion.

Managing Director and Group CEO, Dr Anish Shah, said the company had taken proactive measures to manage inflationary pressures including pricing actions, hedging, product-mix improvements and supplier diversification.

Mahindra had implemented price increases of 5 percent in its auto business and 4 percent in its farm business. Dr Shah indicated that the company expected some margin pressure in Q3, while the outlook for Q4 would depend partly on how commodity prices evolved.

Farm business outlook revised

Mahindra has revised its FY27 tractor industry growth outlook from 5 percent to a flat performance, citing deteriorating rainfall conditions, lower reservoir levels and pressure on farmers’ terms of trade.

Company officials noted that Maharashtra and Karnataka had experienced significant industry contraction with drought conditions affecting demand in these important tractor markets. Higher input costs had also weakened farmers’ purchasing power.

The international farm business continued to face difficult market conditions. Mahindra and Mahindra reported industry contractions of 15 percent in the US, 18 percent in Brazil and 36 percent in Turkey.

It has completed its exit from Sampo’s harvesting business in Finland and Arcon Foundry in Turkey, while the restructuring of its Mitsubishi Agricultural Machinery subsidiary in Japan is expected to be completed by Q4 FY27.

LCV business operating at capacity

Mahindra's LCV business recorded 19 percent volume growth in Q2, while first-half volumes increased 20 percent. The company said it was producing around 30,000 LCVs a month covering its pick-up and Supro ranges and was operating at capacity.

Jejurikar said demand in the LCV industry had strengthened following the GST reduction with monthly industry volumes rising from around 20,000–23,000 units to approximately 30,000 units. The company expects double-digit growth in the LCV industry for the entire FY27.

The planned new LCV launch in the first half of 2027 will add to the company's product pipeline as it works to address capacity constraints.

Mahindra's Q2 performance also reflected growth across its wider businesses. The group reported 25 percent year-on-year growth in PAT, while first-half PAT increased 29 percent.

Quarterly snapshot

The company reported SUV volumes of 183,000 units during the quarter, while its SUV revenue market share stood at 24.3 percent. Total automotive volumes increased 26 percent to 331,000 units.

The automotive business recorded consolidated revenue of INR 377.56 billion representing a 39 percent year-on-year increase. Consolidated PAT rose 55 percent to INR 23.88 billion. Standalone PBIT stood at INR 26.14 billion, up 15 percent, while the standalone PBIT margin was 7.7 percent. Excluding e-SUV CMA, the margin stood at 9.1 percent.

In the electric vehicle segment, the company reported an e-SUV revenue market share of 30.1 percent. Its electric SUV portfolio maintained the number-one position in revenue market share during the first half of FY27.

Mahindra and Mahindra also retained its leadership position in the light commercial vehicle segment below 3.5 tonnes with a market share of 52.3 percent. The figure includes the Bolero Max Pickup 2T variant classified under the 2–3.5-tonne LCV category and Jeeto volumes.

The company reported tractor volumes of 116,027 units during Q2 FY27 compared with 122,936 units in the year-ago quarter, marking a decline of 6 percent. Its tractor market share stood at 41.5 percent. Consolidated farm revenue declined 6 percent to INR 95.72 billion, while PAT fell 9 percent to INR 10.53 billion. Standalone PBIT was INR 14.41 billion with the PBIT margin at 16.8 percent, down 300 basis points.

The company also reported a 37 percent year-on-year increase in combined Q2 FY27 volumes across its commercial vehicle businesses as Mahindra Trucks and Buses Division (MTBD) and SML Mahindra together sold 8,416 units. It was also noted that the company is looking to expand manufacturing capacity for its heavy commercial vehicle range after strong fleet demand for the Blazo i-TRK, launched in August, drove plant utilisation to full capacity.

Across its other businesses, Mahindra Finance reported a 15 percent increase in assets under management, while PAT grew 61 percent. Tech Mahindra's PAT increased 33 percent with its EBIT margin improving to 14.8 percent, up 260 basis points.

Mahindra Lifespaces recorded residential pre-sales of INR 11 billion, up 41 percent, while Mahindra Logistics reported revenue of INR 20.95 billion, an increase of 24 percent with PAT growing threefold.

At the group level, Mahindra's standalone revenue increased 26 percent to INR 442.82 billon, while EBITDA rose 4 percent to INR 67.18 crore. Standalone PAT increased 13 percent to INR 51.02 billion. The company reported a return on equity of 21 percent on an annualised basis and year-to-date earnings per share of INR 89.5.

Comments (0)

ADD COMMENT

Link Copied!

Universo Ferrari India has concluded its two-week exhibition at Yashobhoomi in New Delhi, recording more than 22,000 visitors. The event showcased the automaker's heritage, motorsport involvement, engineering and future product strategy to clients, industry partners and students.

The display featured a range of road cars, including the Ferrari F80, 849 Testarossa Spider, 12Cilindri Spider, Amalfi Spider, Daytona SP3, and F50. Motorsport exhibits included the Scuderia Ferrari SF-26 Formula 1 car, the 499P hypercar, the 296 GT3, and the 296 Challenge. The exhibition also featured Ferrari Luce, the brand's first electric car, alongside heritage models such as the 365 GTB4 and the 612 Scaglietti from the 2008 Magic India Discovery tour, while the Ferrari Hypersail made its debut in Asia. During the event, Ferrari conducted seminars for approximately 1,000 students and held a charity auction supporting Bal Raksha Bharat to assist educational programs.

The event was preceded by a drive featuring 25 Ferraris travelling 1,800 kilometres from Mumbai to New Delhi via Vadodara, Udaipur, Jaipur and Agra.

Ferrari also announced Avelon Luxe as its India-based partner for the Ferrari Hypercar and Ferrari Challenge Middle East series. To support its growth in the market, Ferrari plans to expand its retail footprint in India by opening two new dealerships in Chennai and Ahmedabad by the end of 2026.

Comments (0)

ADD COMMENT

Link Copied!

Volkswagen is gearing up to launch the New Virtus, a refreshed take on a sedan that has won over discerning buyers since its June 2022 debut. The model earned its standing as the segment's most loved premium sedan through distinctive styling, German engineering credentials, engaging driving dynamics, a premium experience and a strong safety focus. The new version carries those traits forward while introducing a fresh visual identity.

Beyond transportation, the Virtus holds meaning for Volkswagen customers as a symbol of pride, aspiration and individuality, blending premium ownership with driving thrill. Its road presence, performance and German engineering have made it a source of owner satisfaction. The refreshed styling, drawing on triangular geometry, sharpens the sedan's already distinctive look with greater definition and a contemporary edge.

The New Virtus keeps celebrating the joy of driving while remaining faithful to the attributes that built its following. By extending that legacy, Volkswagen aims to preserve what made the sedan a segment favourite while adding a new dimension to its established character.

Nitin Kohli, Brand Director, Volkswagen India, said, “We are excited to introduce the New Virtus to the Indian market. The Virtus has built a strong connect with its discerning set of customers and has clearly established a leading position in its segment as a stylish, sophisticated and performance-oriented sedan offering great driving pleasure. With this facelift, we are building on a much-loved product, bringing a fresh and contemporary character while retaining the qualities that make the Virtus special. We look forward to continuing to bring the joy of driving to our customers with the New Virtus.”

Comments (0)

ADD COMMENT

Link Copied!

Renault India has commenced customer deliveries of the Duster Strong Hybrid E-Tech 160, with the initial key handover taking place at its newly inaugurated new'R store in HITEC City, Hyderabad.

The delivery of the first unit was completed by Francisco Hidalgo, Vice President of Sales and Marketing at Renault Group India, to T Krishna Gopal, Chief Executive Officer of Eduzi Academy.

The new'R store in HITEC City covers 7,000 square feet with space to display eight vehicles, making it Renault’s largest showroom facility in Hyderabad and its 30th upgraded new'R store nationwide.

The facility is operated in partnership with the VVC Group, which manages three Renault showrooms and two service workshops in the region.

Renault India plans to transition all 73 of its showrooms across 24 major Indian cities to the new'R format by July 2027, with 30 locations converted to date. The Duster Strong Hybrid E-Tech 160 was launched in India on 17 October 2026, at a starting price of ₹16.99 lakh (ex-showroom).

Francisco Hidalgo, Vice-President of Sales and Marketing, Renault Group India, said, "During our planning phase, we set ourselves an ambitious target: to bring the Duster Hybrid to customers in less than a year, in time for the festive season. We are proud to have delivered on that promise, and we begin handing over the Duster Strong Hybrid E-Tech 160 to our customers around Diwali. The strong response since launch reflects growing acceptance of hybrid technology in India. Our commitment, however, goes beyond the product. Hyderabad is an important market for us, and with the new'R store we are building a best-in-class buying and ownership journey, so that every customer enjoys the same standard of experience at the showroom and in service as they do behind the wheel."

Comments (0)

ADD COMMENT

Link Copied!