Mahindra & Mahindra expects monthly electric SUV sales to reach 11,000-12,000 units by March 2027, potentially bringing it close to market leader Tata Motors’ current run rate, as the automaker gears up for five new launches and a significant expansion of manufacturing capacity.
The company is currently producing around 8,000 electric SUVs a month, with existing capacity fully utilised. Mahindra plans to ramp up EV production to 12,000 units per month by February-March 2027, implying a potential 50 per cent increase in monthly volumes.
“We are hoping that we will move to the region of 11,000-12,000 a month of electric SUV volumes, assuming the momentum continues the way it is,” said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, during the company’s earnings call on Thursday.
According to VAHAN data, Tata Motors registered 1,17,547 electric passenger vehicles between January and October 2026, averaging 11,755 units a month. Mahindra registered 66,945 units during the same period, translating into monthly registrations of 6,695 vehicles.
Mahindra’s targeted monthly run rate of up to 12,000 units could put it within striking distance of Tata’s average volumes. However, Tata’s October registrations stood at 14,552 units, significantly ahead of Mahindra’s 8,472, suggesting the market leader continues to enjoy stronger momentum. The comparison is indicative, as company sales and vehicle registrations measure different stages of demand.
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Mahindra plans to increase its combined monthly SUV production capacity from 64,500 units at the end of FY26 to 82,000 units by FY27-end, comprising 70,000 conventional SUVs and 12,000 electric vehicles.
An additional 10,000 units of NU_IQ platform capacity will be added at its Chakan facility, taking total monthly capacity to 92,000 units by FY28-end. Beyond that, the proposed Nagpur plant is expected to add another 40,000 units in two phases, lifting overall monthly capacity to 1.32 lakh units by FY31.
“We are talking about adding capacity for one NU_IQ platform product and one EV product by the end of March, and we are on track for that,” Jejurikar said.
The company plans five launches in the first half of calendar year 2027, including a NU_IQ-based SUV, an all-new electric SUV, an SUV refresh, the Scorpio Lifestyler pickup, and a new light commercial vehicle.
Mahindra sold 23,345 electric SUVs in the second quarter of FY27, accounting for 12.7 per cent of its total SUV volumes. Its electric SUV revenue market share stood at 30.1 per cent, compared with a 23.2 per cent share by volume, indicating a stronger presence in premium EV segments.
Addressing concerns around EV resale values, Jejurikar said consumers should assess electric vehicles on the basis of total ownership costs rather than residual values alone.
“I don’t think it’s right to just look at resale price. You have to see the whole total cost of ownership equation,” he said, highlighting lower running costs over the vehicle lifecycle.
Battery subscription plans, which reduce upfront purchase costs, currently account for less than 10 per cent of Mahindra’s EV sales.
The expansion comes at a time when automakers are grappling with rising copper and rubber prices, as well as supply-chain constraints. Mahindra implemented a weighted average vehicle price increase of 0.4 per cent in October to offset some of these pressures.
The company’s automotive business reported a 55 per cent year-on-year rise in consolidated profit to ₹2,388 crore in the second quarter, even as it lowered its tractor industry growth forecast from 5 per cent to broadly flat.
Mahindra has maintained its guidance of mid-to-high teens SUV volume growth for FY27, with upcoming capacity additions expected to play a crucial role in converting strong demand into higher sales.
Published on November 6, 2026
