Mahindra & Mahindra is poised for growth across petrol, diesel, and electric segments as stable interest rates and tax cuts bolster demand, with a focus on long-term electrification and volume expansion.
Mahindra & Mahindra is preparing for growth in both petrol-and-diesel vehicles and electric models, arguing that the auto market still has room to expand as lower tax rates, steady borrowing costs and stronger industrial demand support buying appetite.
Rajesh Jejurikar, the company’s executive director and chief executive for the auto and farm sector, told businessline that the industry has been more constrained by supply than demand in recent months. He said the biggest strain would have come if prices and interest rates had risen together, but that combination has not materialised.
Jejurikar said the recent cut in goods and services tax has improved affordability at a time when lending costs have remained broadly stable. He also pointed to firmer activity in sectors such as cement and steel, which has lifted freight movement and vehicle use, especially in commercial vehicles. Businessline reported that earlier commodity inflation and regulatory changes had pushed commercial vehicle prices up sharply, but the tax relief has helped bring effective prices down again.
The benefits are not limited to fleet buyers. Mint reported that the lower tax rate is helping demand for small cars and two-wheelers, while Forbes India said many buyers are trading up to higher trims and larger models rather than simply seeking the cheapest option. That fits Mahindra’s own experience: Jejurikar said the stronger market gives the company scope to push both its internal combustion engine line-up and its electric vehicle business without forcing one to slow for the sake of the other.
On electrification, Jejurikar said Mahindra still sees EVs as the long-term endpoint, even as it accepts that hybrids may suit some high-mileage users. NDTV Profit reported that the company views the steady 5% tax rate on EVs as an important policy signal for long-term investment, while earlier comments from the group indicated EVs could eventually account for a meaningful share of SUV sales. For now, Jejurikar said the priority is absolute volume rather than a fixed mix, and he sees no reason the company cannot pass 120,000 EV units.
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