Mahindra targets 12,000 EVs a month as it readies new SUV launch

Mahindra & Mahindra plans to raise EV production capacity from 8,000 to 12,000 units a month in the next couple of quarters, citing full utilisation of current capacity and festive-season demand. The automaker also sees battery-as-a-service gaining traction in Tier-2 markets.

— Source publishedTue, 1 Sept, 2026, 13:04 IST·First seen Tue, 1 Sept, 2026, 13:15 IST·Source CNBC-TV18 · Companies

What happened

Mahindra & Mahindra · Mahindra plans to lift monthly EV capacity from 8,000 to 12,000 units after a major SUV launch in the next couple of quarters. It is

Key facts

  • EV capacity rising from 8,000 to 12,000 units per month
  • Current EV monthly volumes: 7,500-8,000 units
  • August overall production: 107,648 vehicles
  • Battery-as-a-service upfront EV cost: ₹11-12 lakh
  • Battery-as-a-service charge: about ₹3.75 per km
  • LCV 2-3.5 tonne segment growth: 20% in August and 19% from April-August
  • Vehicle price increase in July: 2-2.7%
  • Market capitalisation: around ₹4,12,379.03 crore

Why this matters

Battery-as-a-service traction in Tier-2 markets strengthens the case for partnerships across battery leasing, charging, financing and regional distribution.

What to watch

  • Monthly EV bookings, cancellations, waiting periods and retail registrations after the SUV launch.
  • Evidence that output moves above the current 8,000-unit monthly ceiling without dealer inventory accumulation.
  • Battery-as-a-service take-up rate, especially in Tier-2 markets, and its effect on average transaction prices.
  • Competitor EV price cuts, new SUV launches and financing promotions.
  • Charging-network additions, battery supply availability and interest-rate trends.
  • Expand dealer EV training, service-bay capacity and test-drive fleets in Tier-2 and Tier-3 cities.
  • Pair the SUV launch with battery-as-a-service, exchange bonuses, EMI offers and assured-resale messaging to lower upfront-cost barriers.
  • Secure battery-cell, power-electronics and semiconductor supply to avoid bottlenecks at 12,000 units per month.
  • Scale charging partnerships around dealerships, highways, apartment clusters and fleet hubs.
  • Monitor booking-to-delivery conversion and allocate production regionally to prevent inventory concentration.