Mahindra & Mahindra Ltd. (M&M) has capped FY25 with one of its strongest performances to date, recording substantial growth across its Auto, Farm, and Services businesses. At the forefront was the Farm Equipment Sector (FES), which achieved its highest-ever Q4 market share of 43.3%, with an annual gain of 1.7 percentage points—outpacing industry growth. The segment also crossed a significant milestone by clocking over INR 1,000 crore in farm machinery revenues for the year.
Rajesh Jejurikar, CEO of Auto and Farm Sectors, said, margins remained robust, with Q4 tractor margin hitting 20.8% and full-year farm margins at 19.7%. Farm sector PBIT rose 25% in Q4 and 14% for the full year. Despite a global slowdown impacting exports, the company reported strong telematics traction and delivered a stellar return on capital employed (ROCE) of 53.7%.
Auto Business
In the auto business, SUV volumes surged 20% YoY, reaching 550,000 units, with a revenue market share of 22.5%. Mahindra also emerged as the leader in EV revenue market share, driven by the launch of two new electric SUVs, delivering over 6,300 vehicles within 40 days of launch. In LCVs, Mahindra gained 4.8 share points in Q4 and 2.9 for the year, outperforming a sluggish industry. Backed by new launches and deeper southern market penetration, its standalone auto margin rose to 9.5%, while consolidated auto PBT grew 10% in Q4 and 29% for the full year.
Auto Momentum Accelerates
Mahindra’s auto sector continues to build on its strong foundation, clocking a 35% CAGR and securing the top position in SUV revenue market share. In FY25, the company gained further traction in the LCV segment and successfully launched two electric SUVs, while its international business saw notable growth, especially in South Africa and Australia. With a robust ROCE of 45.2% and rising brand affinity, the company’s momentum remains strong, he pointed out.
On the product front, Mahindra had earlier outlined a roadmap of nine ICE SUVs, seven electric SUVs, and seven LCVs by 2030. Based on the products already launched, the company plans to introduce seven ICE SUVs, five electric SUVs, and five LCVs, with more in the pipeline. A new platform will be unveiled on August 15—not a product launch but a vision reveal that will preview future-ready concepts based on next-gen architecture, he mentioned.
Despite urban market pressures, Jejurikar remains optimistic about mid to high teens growth in SUV volumes for FY26. With steady rural demand and strong bookings for electric SUVs, the company’s diversified and expanding portfolio continues to position it well for sustained growth, he added.
EV Adoption Lessons
As Mahindra ramps up EV deliveries, having handed over 6,300 electric SUVs in just over 40 days, it’s clear the EV ecosystem demands far more than just manufacturing readiness. The company has quickly realised that EV delivery is a markedly different process from ICE vehicles, requiring a more immersive and supportive handover experience.
Unlike conventional vehicles, the delivery of an EV involves a 2–3 hour session per customer—time needed to explain features, charging protocols, and usage behaviour. In addition, the company must coordinate with housing societies or offices to enable charger installations, followed by overseeing the actual set-up at the customer’s residence or workplace. This extended delivery ecosystem requires careful planning and dedicated dealer bandwidth, he explained.
Mahindra is deliberately calibrating its delivery ramp-up to ensure no compromise on customer experience. “The focus is not only on maintaining high product quality in a high-tech offering but also on ensuring that dealerships are fully prepared to invest the time and attention each EV buyer needs,” he said. With strong demand and a favourable response—especially for higher-end variants—the company is determined to scale responsibly, ensuring seamless customer onboarding into electric mobility.
MHCV, Last-Mile Mobility As Strategic Growth Engines
Mahindra is setting its sights firmly on medium and heavy commercial vehicles (MHCVs) as a promising growth avenue. While acknowledging the complexities of gaining share in this competitive segment, the company views MHCVs as a “growth gem” worth scaling. From its current 3% market share, the vehicle manufacturer is targeting an organic rise to 5% within five years, with a keen eye on strategic collaborations to accelerate momentum.
Simultaneously, the company anticipates a two to threefold expansion in its last-mile mobility business by FY30, powered by the shift to electric vehicles. This segment will go beyond three-wheelers to include light four-wheelers across multiple tonnage categories, Jejurikar said.
With demand rising not only in India but also in global markets, exports are poised to become a significant driver of this growth. The company hopes to invest in both segments as part of its broader strategy to diversify and future-proof its mobility portfolio.
Gears Up For The Future
With demand surging across its SUV portfolio, the vehicle maker is making significant moves to expand manufacturing capacity and future-proof its operations. In FY26, the company will add production lines for the recently launched XUV 3XO and Thar Roxx models, boosting output by 3,000 units per month. These additions will increase the combined monthly capacity to approximately 10,500 units.
Looking ahead, the company is preparing for a major scale-up. A new platform, set to be unveiled in August, will anchor an additional 1.2 lakh units per annum at the Chakan plant. Simultaneously, groundwork will begin on a brand-new greenfield facility, expected to be operational by FY28. Envisioned as a future-ready plant, this facility will initially cater to passenger vehicles, with scope for other business verticals depending on evolving needs and state-level investment incentives, he mentioned.
Mahindra’s existing capacity is already under significant pressure, with SUV plant utilisation exceeding 90%. Flagship models like the Scorpio, Thar and XUV 3XO are running at near or full capacity, while models like Bolero have slightly more headroom.
The greenfield plant, part of Mahindra’s long-term vision to support a diversified and electrified portfolio through 2030, shows its focus on sustaining growth and scale in a fast-evolving market, he added.
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