Mahindra Bets on BEVs; Hybrid, CNG May be Considered in Certain Conditions

Published on 6 Oct, 2025, 7:49 PM IST
Updated on 6 Oct, 2025, 7:50 PM IST
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Sumantra Bibhuti Barooah
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The company plans to begin its global play for BEVs starting with the UK within the next 18-24 months.

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For SUV major Mahindra & Mahindra, BEVs (Battery Electric Vehicles) are a big bet for multiple reasons. Key among them are meeting the upcoming CAFE III (Corporate Average Fuel Efficiency) norms, and building an international presence.

Currently, BEVs contribute around 8% of the company's overall sales, which is a little higher than the passenger vehicle industry-level penetration of around 5%. The target is to ramp this up significantly over the next two years, in order to also meet CAFE III norms. “If we are in the high teens in terms of EV penetration, we should be at least in the shooting range of what CAFE wants us to be,” said Nalinikanth Golaguntha, CEO, Automotive Division, M&M, at a roundtable discussion with journalists on Monday.

The proposed CAFE III norms require OEMs to reduce CO2 emissions from 113 g/km currently, to 91.7 g/km by April 1, 2027.

The other key motivator for M&M to ramp up its BEV business is to enhance its international business, which is also in line with the Government’s call for Indian OEMs to be “much more export-oriented”. M&M plans to begin its global play for BEVs, starting with the UK within the next 18-24 months.

Last month, 4,100 units of M&M's XEV 9e and BE6 BEVs put together were registered. At a little over 14,000 units, September also saw the highest number of electric passenger vehicle registrations. That could translate to a 100% YoY growth in electric passenger vehicle registrations in India. Golaguntha said around 60% of BEVs in the domestic passenger vehicle market already meet price parity with equivalent petrol vehicles.

Currently, the SUV major has a monthly BEV production capacity of 5,000 units, which can be scaled up to 8,000 units “in a few weeks”.  

Hybrid, CNG vehicles, only if…

M&M says its bet on BEVs will remain, and a hybrid offering in its portfolio may be considered if the regulatory environment requires it. Currently, Golaguntha said, this is not the case. Even if a hybrid Mahindra SUV were to be launched, it would sit in the portfolio for customers who want their vehicle to deliver very high fuel efficiency, like how many customers pay a premium for a diesel vehicle as it consumes less fuel than a petrol vehicle. “In our view, hybrid is something similar,” says Golaguntha.

When it comes to the alternative fuel option of CNG, Mahindra says it might be considered once CNG technology offers performance good enough to meet a key requisite for M&M’s product strategy – power on tap. Golaguntha said CNG technology doesn’t currently meet that requirement for M&M, but also added that it could evolve for the better in the future.  

“It doesn't mean that there is no CNG technology that will come up later in the future, which still matches that requirement. We will continue to evaluate. If we feel that we can get a product out there, which matches that power expectation which our customers have, we will definitely consider CNG at that point", he said. 

For now, M&M is putting all its eggs in the EV basket, when it comes to new powertrain technology. Golaguntha said that with its BEV models, powered by a 79kWh battery pack, with 450-480 km of real world driving range, 95% of regular driving cycles can be met with a single charge. Customers are enquiring more about the resale value of a BEV, battery warranties, and charging infrastructure than price parity with petrol vehicles, according to Golaguntha.       

To meet the “strategic imperatives” of reducing India's fuel import bill, increasing automobile exports, and also meeting the Paris Accord goal of containing global warming that the Government is pushing for, Golaguntha said “only EV is the end state”.

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Nalinikanth Golaguntha

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Mahindra Bets on BEVs; Hybrid, CNG May be Considered in Certain Conditions