Mahindra to invest Rs26,000 cr, launch 23 new vehicle models by 2030
18 May 2024
Mahindra & Mahindra Ltd has announced major expansion plans with proposed investment of around Rs26,000 crore across existing and new automotive technologies, including ICE, EV and possibly hybrid technology.
The company has also proposed significant increase in vehicle production and new car launches.
Announcing this at the annual shareholders’ meeting, Mahindra explained strategic priorities for the coming years.
Mahindra plans to launch 23 new vehicle models, which include nine sports utility vehicles (SUVs) based on the internal combustion engine (ICE), seven electric vehicles (EVs) and seven light commercial vehicles (LCVs), by 2030.
The new ICE-based SUVs include three remodelled ones, such as the latest XUV3XO and six all-new models.
The move is clearly intended to fight off looming competition from ICE vehicle models with enhanced features.
The seven new EV models include some of Mahindra’s next-gen EVs such as the XUV.e8, XUV.e9, BE.05, BE.07 and BE.RALL-E, besides the EV versions of the Thar and the BE.09 that are already under development.
The proposed seven LCVs include five ICE models and two electric models – both in the sub-3.5-tonne range.
As per the capacity addition plan, Mahindra’s SUV production capacity, which expanded from 39,000 units per month at the close of the 2023 financial year to 49,000 by the close of fiscal 2024, will expand further to 64,000 units by the end of the 2025 fiscal.
Mahindra is also ramping up production of the Thar 5-door and the XUV3XO/400 by 10,000 units and 5,000 units, respectively.
Mahindra has planned an additional capacity of 10,000 units of electric vehicles (EVs) by the close of fiscal 2026.
Mahindra has targeted total production capacity of 72,000 vehicles per month by the end of fiscal 2026.
Segment-wise, Mahindra will be deploying Rs8,500 crore for overhauling its internal combustion engine (ICE) technology for the proposed SUV line-up.
The commercial vehicles segment, including the electric CVs, as well as Mahindra truck and bus division will see investment of Rs4,000 crore.
Besides, Mahindra will be investing Rs1,500 crore in ongoing projects. Total auto sector investment over the period ending fiscal 2027 is projected at Rs14,000 crore. This does not include the Rs12,000 crore investments in Mahindra Electric Automobile Limited (MEAL). The combined investments in new products and capacity expansion will add up to Rs26,000 crore.
Mahindra reported a 4 per cent increase in consolidated net profit for the January-March quarter of the 2023-24 financial year to Rs2,754 crore against a profit of Rs2,637 crore for the previous year quarter.
