Mahindra looks to scale up auto business globally; eyes more markets with new models

Having consolidated its position in the domestic market, Mahindra & Mahindra is now looking at ways to expand its presence across international markets, as per a top company executive.

The Mumbai-based auto major is looking to scale up its automotive business globally in a phased manner with plans to leverage its existing distribution channels in various overseas markets in the first phase.

In an interaction with PTI, Mahindra & Mahindra (M&M) Executive Director and CEO for auto and farm sectors Rajesh Jejurikar said new products like the under-development lifestyle pickup truck and the new range of electric models would allow it to enter new international markets.

He noted that the automaker already has a strong presence in countries like South Africa, Australia, New Zealand, Morocco, and Chile with an established distribution network.

"A lot of these geographies started for us as markets where we sold Scorpio pick-up. Now these markets are enabling us to launch models like XUV 700, Scorpio N, and XUV 3XO," Jejurikar said.

So, that's phase one, which is existing markets with products the automaker had launched in the last three or four years, he stated.

The second part will initiate with the introduction of the global lifestyle pick-up, which would cater to both right-hand and left-hand drive markets, he stated.

"It will open up newer markets for example, the ASEAN region is a big pickup market where we today don't have a presence at all," Jejurikar said.

In 2023, M&M unveiled a "Global Pik Up" concept which is expected to move to the production stage in 2027.

The company aims to tap into the international lifestyle pickup market with the model.

Jejurikar said the third leg of enhancing global play would see the electric SUVs debuting across various right-hand drive markets.

"For example, maybe a market like the UK, but we are some time away. We first want to consolidate the products in India before going there," he noted.

"And if we start getting a good response in right-hand drive markets, then we would want to go into left-hand drive markets as well with the born electric electric range," Jejurikar said.

So in a way, it's a calibrated strategy where the automaker plans to build the markets and brands in a phased manner with newer products coming in, he added.

The company also plans to consolidate its ICE (internal combustion engine) portfolio in 2025, Jejurikar noted.

"Thar Roxx has generated a very good demand. We need to ramp up capacity a little bit and we are doing that. For 3XO as well we need to start ramping up capacity," he stated.

Besides, the company would like to further build on its electric journey in 2025, Jejurikar said.

"The two products we've launched, we believe, will get a good response. We hope to make sure we stabilise quality, ramp up capacity and offer a very good customer experience," he said.

"So electric is a key part of our priorities for the year 2025," he noted.

The company unveiled two ground-up electric models -- BE 6 and XEV 9e -- in November last year with deliveries expected to commence around March this year.

M&M aims to sell 5,000 units of the two electric models per month, to begin in the initial phase.

On Wednesday, the company unveiled its EV manufacturing and battery assembly facility at its Chakan plant.

M&M is creating a production capacity of 90,000 units per annum at the plant for the new electric models.

The production capacity at the facility can be further scaled up to 1.2 lakh units per annum.

M&M has announced a capex of Rs 16,000 crore for the electric vehicle business between the FY22-27 cycle.