M&M Targets Mid-To-High Teens Growth For SUV Sales In FY26

Mahindra & Mahindra Ltd. is targeting a mid-to-high teens growth for SUV sales in FY26, led by a strong portfolio, demand and new product launches.

"Growth (of SUV sales) of about 18% for June, and the quarter at 20% plus, is in line with what we have put out as mid-to-high teens growth for SUVs," Nalinikanth Gollagunta, chief executive officer of M&M's automotive division, said. "Frankly, the strength of the portfolio is what is carrying us forward."

"We've had some successful launches over the last 12 months. So, it's the demand for these products which is holding us in good stead," he said during a conversation with NDTV Profit on Wednesday.

M&M reported a 14% year-on-year jump in total sales for June at 78,969 units. The passenger vehicle sales increased 18% to 47,306 units in June, while overall sales stood at 48,329, including exports. For the month, SUV sales reached 47,306 units, marking a growth of 18% YoY. The three-month period ended June 2025 also marked the highest quarter ever for SUVs.  

The company's recent launches, including two internal-combustion-engine models and two electric vehicles, have been key drivers of this growth. However, established models like the Scorpio and Bolero remain the backbone of the company's portfolio, with the Scorpio family alone clocking 14,000 to 15,000 units monthly in sales.

"So, that continues to be a bedrock for us and on top of it, the growth is coming from the new models," he said. 

He underlined that the share of SUVs in the overall passenger vehicle market has gone up from 30% to 35% five years ago to over 60% currently. "People are travelling longer and people are travelling on roads, which can have varying qualities. So, they look for an SUV, and the safety that an SUV gives is also something which is a key buying factor."

EVs are expected to account for 6% to 8% of the company's passenger vehicle portfolio this financial year. It has operationalised a capacity of 5,000 units per month. Currently, it is producing around 4,000 units, with plans to scale up as new variants are introduced ahead of the festive season.

Gollagunta described international expansion as a "long-term game". The company plans to lead its global push with its "world-class" EVs, which have garnered interest abroad. It already has a strong presence in South Africa and Australia, he underlined. 

The top executive addressed concerns about supply-chain disruptions due to China's new export controls on rare earth minerals.

"Currently, we have inventory for the affected parts to meet our production needs. But we are also working actively with our supply chain to ensure that we can source the assembled parts. We are also exploring alternate materials," the CEO emphasised. 

He added that the company is working with the Society of Indian Automobile Manufacturers and the Union government to expedite the certifications it needs

M&M is looking forward to its annual event on Aug. 15, where it will unveil a new platform teased as "Vision.T". "We will reveal a new platform which will anchor our new vision SUVs," said Gollagunta.