Mahindra & Mahindra expects sales momentum to continue this year on the back of new product actions and a differentiated SUV portfolio created over the past four years, a top company executive said on Tuesday.
Last year, the Mumbai-based auto major leapfrogged to second position in passenger vehicle sales, ahead of Tata Motors Passenger Vehicles and Hyundai Motor India Ltd.
In an interaction with PTI, Mahindra & Mahindra Executive Director and CEO (Auto & Farm Sectors) Rajesh Jejurikar said the company’s success in 2025 was driven by differentiated products like Thar Roxx and 3XO.
He noted that the newly introduced XUV 7XO and the electric model XEV 9S are going to help the company continue on the growth path.
“Last year, we also introduced new versions of Bolero and Bolero Neo. So, we believe that we have enough at play to keep our momentum going because the customers are looking for newness and every year, we are able to create one or two things (products), which really strike that sweet spot and get momentum,” Jejurikar noted.
Passenger vehicle wholesales in India rose to a record 45.5 lakh units in 2025, marking a growth of nearly 6 per cent, as policy tailwinds in the second half helped the industry overcome a sluggish start.
The industry surpassed its previous peak of 43.05 lakh units in 2024, aided by record annual sales from market leader Maruti Suzuki India, Mahindra & Mahindra and Tata Motors Passenger Vehicles.
A notable shift in the competitive landscape saw Mahindra & Mahindra and Tata Motors Passenger Vehicles surpass Hyundai Motor India to emerge as the second- and third-largest PV makers by volume, pushing the South Korean automaker to fourth place.
SUVs continued to dominate demand, accounting for 55.8 per cent of the total PV sales in 2025, up from 53.8 per cent in 2024, even as small cars showed early signs of recovery following GST reforms.
Mahindra and Mahindra’s retail sales rose to 5,92,771 units in 2025, a growth of 20 per cent over 4,92,981 units in 2024.
Jejurikar said that GST reform has been a major enabler for driving car sales.
“We are seeing the positive impact on LCVs (less than 3.5 tonne) as well. The segment was not growing for almost 2-3 years, but that suddenly turned around with the GST rate cut and festive season sales pick up,” he added.
The GST reform has created the necessary stimulus, which will drive the economic growth of the country, he noted.
“With the GDP expected to grow by 7.5-8 per cent, it will trigger many of the segments in which we play,” he pointed out.
Jejurikar noted that the company’s business model has witnessed success, with it becoming the second-largest carmaker despite the average selling price of its models being on the high side compared to the competition.
“I think this combination of being able to get successful volume at high price points, which drives revenues and margins, is noteworthy,” he added.
The automaker on Monday launched the seven-seater XUV 7XO, the newer version of XUV 700, at an introductory price ranging between ₹13.66 lakh and ₹24.11 lakh (ex-showroom).
Jejurikar said the model is expected to bring in additional volumes to the company’s fold.
“The average sales of XUV 700 have been in the range of 7,000 units a month. We expect at least 30 per cent upside with 7XO,” he added.
On expanding production, Jejurikar noted that the new capacity at Chakan would be added by 2027.
“A new greenfield plant is also under discussion and evaluation. Till then, we will have to tweak some of our individual product capacities and existing plants,” he added.
On EVs, he said the automaker remains optimistic about the sales growth for its product range this year.
Mahindra plans to sell around 7,000 electric vehicle units by the end of this fiscal.
The Mumbai-based auto maker currently sells between 4,000 and 5,000 electric vehicles per month.>
