In a remarkable achievement for the Indian automotive industry, 41.53 lakh cars were sold in the last fiscal year, marking the highest sales ever recorded in a financial year. This impressive figure indicates that annual sales have remained above the 40-lakh threshold for three years running. The surge in passenger vehicle sales can be attributed to rising incomes, a burgeoning middle class, and rapid urbanization, all of which are transforming India into one of the fastest-growing automotive markets in Asia.

SUV Sales Soar Among Young Buyers

Among the various segments in the passenger vehicle market, sports utility vehicles (SUVs) have captured the attention of millennials. Known for their versatile performance and commanding presence on the road, SUVs are becoming the go-to choice for younger drivers seeking a blend of style and functionality. This growing trend signifies that owning an SUV is more than just transportation; it’s a lifestyle statement that resonates with the adventurous spirit of today’s youth.

Mahindra & Mahindra Leads the Charge

Mahindra & Mahindra is at the forefront of the SUV revolution, with a diverse lineup of rugged and feature-packed models such as the Scorpio-N, XUV700, and Thar. The company’s strategic focus on SUVs—eschewing sedans and hatchbacks—has propelled it to maintain a strong sales trajectory.

• In FY25, Mahindra reported sales of 551,487 SUVs, a record-setting achievement that reflects a 20% year-on-year growth.
• This performance solidified its position as India’s top SUV manufacturer and positioned it as the No. 2 passenger vehicle company by revenue.

Significant Milestones for Mahindra

In addition to its impressive sales figures, Mahindra reached several noteworthy milestones:

• Achieved over 50% market share in the light commercial vehicle category below 3.5 tons.
• Expanded its international operations by 41% year-on-year.
• Recognized as a leader in sustainability by being the only Indian automotive company listed in the DJSI Index.

The March quarter was particularly fruitful, with Mahindra achieving its highest quarterly SUV dispatches at 149,129 units, marking an 18% increase from the previous year. The demand for popular models like the Scorpio, XUV3XO, and Thar has surged, further driving this growth.

Electric SUVs Boost Sales

The recent introduction of Mahindra’s born-electric SUVs, the XUV.e9 and BE.6, has also contributed to increased sales. In March alone, the company dispatched 3,014 units of these new electric models, demonstrating a strong market reception.

• The Thar Roxx is now produced at a rate of 10,000 units per month, with both 3-door and 5-door variants available.
• The XUV700 saw production rise to 8,887 units, up from 6,910 units in the same month last year.

This robust performance translated into a 20% increase in Mahindra’s consolidated net profit, reaching ₹1,438 crore in the auto segment during Q3FY25, with revenues hitting ₹23,391 crore.

Stock Performance and Future Outlook

The surge in SUV sales has had a pronounced effect on Mahindra’s stock price. Since March 2020, when shares were priced at ₹245, the stock skyrocketed to ₹2,580, reflecting a staggering 953% increase. Despite hitting a record high of ₹3,270 in February, recent global trade tensions and market shifts have caused a decline of 21% from that peak.

Analysts maintain a positive outlook on Mahindra’s growth, emphasizing its strong market position and the promising reception of its electric SUVs. They predict that the company could sell around 5,000 electric SUV units monthly soon after launch, appealing to a new customer segment typically seeking vehicles in the ₹25–30 lakh range.

Continued Growth Projections

Brokerage firms like Motilal Oswal and ICICI Securities believe Mahindra is poised to excel in its core markets, driven by a recovery in rural economies and upcoming product launches. They expect sustained growth supported by an expanding portfolio of utility vehicles (UVs) and a more optimistic outlook for its Farm Equipment Segment.

With its strategic focus on SUVs and electric vehicles, Mahindra & Mahindra is well-equipped to navigate the evolving automotive landscape and maintain its trajectory of success.