Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, M&M
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Mahindra & Mahindra is doubling down on both internal combustion engine (ICE) vehicles and electric vehicles (EVs), betting that a rare combination of improved affordability, stable borrowing costs and stronger industrial activity will sustain robust demand across the automotive market despite ongoing supply-side challenges.<\/p>\n
Speaking exclusively to businessline, Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, said the demand environment remains stronger than many expected, with the industry having faced supply limitations rather than a shortage of buyers over the past several months.<\/p>\n
\u201cThe bigger impact would come if prices and interest rates rose together, which has not happened. Demand remains robust and, over the past five or six months, we have been more constrained by supply than demand,\u201d Jejurikar said.<\/p>\n
According to him, the resilience in demand is being supported by a convergence of favourable factors. The reduction in GST has improved vehicle affordability, while interest rates have remained stable despite inflationary pressures. At the same time, stronger activity in sectors such as cement and steel has boosted freight movement and vehicle utilisation, particularly in the commercial vehicle segment.<\/p>\n
Commodity inflation and regulatory changes had earlier pushed commercial vehicle prices up by nearly 20 per cent. However, GST-related benefits effectively reduced acquisition costs by around 8-10 per cent, helping bring effective vehicle prices closer to levels seen about two-and-a-half years ago.<\/p>\n
\u201cBoth had to happen at the same time. I don\u2019t think the commercial vehicle segment would have revived as easily without GST,\u201d Jejurikar said, adding that rising consumption and industrial output have further improved fleet economics.<\/p>\n
In passenger vehicles, he noted that GST-led affordability gains were more visible in the sub-\u20b910 lakh segment, while customers in higher price brackets continued to upgrade to larger vehicles and premium variants.<\/p>\n
The sustained demand momentum gives Mahindra confidence to pursue growth in both ICE and EV portfolios. While the company had previously indicated that EVs could account for 20-30 per cent of SUV volumes by 2027, Jejurikar said the focus is increasingly on achieving strong absolute EV volumes rather than adhering to a fixed mix.<\/p>\n
\u2018If ICE is growing very strongly, are we going to slow down ICE simply so EVs become a certain percentage? No,\u201d he said. \u201cWe see no reason why we won\u2019t cross 1.2 lakh (units),\u201d he added, referring to EV volumes.<\/p>\n
At the same time, Mahindra remains firmly committed to electrification. Weighing in on the intensifying hybrid-versus-EV debate, Jejurikar said hybrids may have a role for customers with high usage patterns, but the company\u2019s long-term view remains unchanged.<\/p>\n
\u201cOur primary approach is that EV is the destination,\u201d he said. Hybrids can make economic sense for high-usage customers, but EVs offer substantially lower running costs where viable. Charging remains a constraint, though the economics of charging are improving as EV penetration rises and government support expands.<\/p>\n
For Mahindra, therefore, the opportunity is not a choice between ICE and EVs. Instead, the company sees sufficient headroom for both to grow simultaneously, underpinned by a demand environment that continues to be resilient.<\/p>\n
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