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Mahindra's Record Sales: EV Push and GST Reforms Drive Growth
1 Jan
Summary
- Mahindra's automotive division achieved record sales in 2025 due to EV launches and GST reforms.
- December 2025 saw significant year-on-year growth in both SUV and LCV segments.
- EV production capacity is set to increase to 8,000 units monthly by April 2026.
Mahindra & Mahindra's automotive division reported record sales for 2025, attributing the success to a combination of electric vehicle (EV) launches and Goods and Services Tax (GST) reforms. Nalinikanth Gollagunta, CEO of the Automotive Division, highlighted that new product introductions in late 2024 and GST changes implemented in September 2025 significantly boosted volumes. December 2025 saw domestic SUV volumes increase by approximately 23% and light commercial vehicle (LCV) volumes rise by about 34% year-on-year.
The company anticipates continued growth driven by ongoing GST reforms, which are expected to foster premiumization in passenger vehicles and initiate a replacement cycle for commercial vehicles. EVs are identified as a key future growth driver, with bookings for newly launched EV models already underway and retail sales commencing in January 2026. Mahindra plans to expand its EV production capacity from 5,000 units to 8,000 units per month by April 2026, projecting an 80% utilization rate.
Discussions regarding rising raw material costs are ongoing, with pricing adjustments to be carefully calibrated based on commodity movements. Furthermore, the company is actively engaged in consultations with government bodies and industry associations concerning upcoming Corporate Average Fuel Efficiency (CAFE) norms, underscoring a commitment to emission reduction through enhanced EV focus. Mahindra & Mahindra's stock has seen a rise of over 22% in the past year.
