Mahindra & Mahindra (M&M) has announced that its XEV 9S model is now the company's best-selling electric vehicle, leading sales in the fourth quarter of the financial year 2025-26. This surge saw the XEV 9S overtake the XEV 9e, which had previously held the top spot as India's leading electric car for a brief period.
According to Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors at M&M, the sales split is heavily skewed towards the XEV 9S, followed by the XEV 9e and BE 6. Jejurikar noted a current capacity constraint in ramping up production of the 9S beyond its existing levels, highlighting the strong demand for the model.
Mahindra's Growing EV Market Presence
At the close of Q4 FY26, M&M's electric vehicle penetration within its total portfolio significantly increased to 9.6%, up from 4.4% in the same quarter of the previous financial year. In terms of overall EV market share, M&M secured the second position nationally with 31.4%, trailing only Tata Motors Passenger Vehicles. However, M&M led the electric vehicle segment in revenue market share during Q4 FY26, demonstrating strong performance in higher-value EV sales.
Meeting Future CAFÉ Norms and Production Challenges
Looking ahead, M&M is preparing to meet the corporate average fuel efficiency (CAFÉ-3) norms, which will come into effect from April 2027. The company aims for EV penetration between 18% and 20% over a five-year period to comply with these regulations. Jejurikar expressed confidence, stating that M&M's EV penetration had already exceeded 11% in the last two months, projecting a comfortable achievement of the new norms. The company anticipates reaching 13% to 15% EV penetration by March 2027.
Despite its EV success, M&M faces certain operational hurdles. The Mumbai-based automaker is closely monitoring LPG availability for its 400 suppliers daily, particularly amidst geopolitical tensions in West Asia. While no production losses were reported in March and April due to gas shortages, the company experienced significant supplier shortfalls in April, primarily attributed to manpower availability issues as workers returned to their villages for state elections. M&M expects this situation to improve in May.
Demand Resilient to Fuel Price Hikes
M&M does not foresee any substantial impact on demand for its products from potential future fuel price increases. Jejurikar explained that many of M&M's higher-price point products cater to customers who are less sensitive to fuel cost fluctuations. The company's target customer base is not primarily driven by fuel efficiency concerns, suggesting that its SUV portfolio, including its popular EVs, will remain resilient to such market changes.