Mahindra’s SUV-Centric Strategy Pays Off Amid Segment Boom

Mahindra & Mahindra's strategic focus on SUVs has proven prescient as the segment has exploded in popularity post-COVID, helping the company achieve its highest-ever quarterly SUV volumes of 152,100 units in Q1 FY26, a 22% year-on-year growth.

The transformation of India's automotive market has been dramatic. Pre-COVID, in 2019, SUVs accounted for less than 30% of passenger vehicle sales, with sedans and hatchbacks dominating. The pandemic fundamentally altered consumer preferences, with buyers gravitating toward SUVs for their perceived safety, higher seating position, and versatility for both urban and highway driving. By 2024, SUVs crossed 50% market share, a shift that caught many manufacturers off-guard.

Mahindra, historically an SUV-focused brand since its early days with the Armada and Bolero, found itself ideally positioned for this transition. Unlike competitors who had to rapidly develop SUV portfolios, Mahindra already had the platforms, manufacturing capabilities, and brand perception aligned with SUVs. The company's revenue market share in SUVs has surged to 27.3%, up 570 basis points year-on-year, making it the #1 player by revenue in the segment.

The company has consolidated its leadership through a product blitzkrieg that began with the XUV700 launch in 2021. This was followed by the Scorpio N, which modernized an iconic nameplate; the Scorpio Classic, which retained the original design for traditional buyers; the Thar Roxx, a five-door version of its popular lifestyle off-roader; and most recently, the XUV 3XO, a sub-4-meter SUV. Each model targets specific customer segments and use cases, creating a comprehensive portfolio from ₹8 lakh to ₹25 lakh.

The product strategy has been complemented by a focus on features and technology previously unavailable in the Indian market at these price points. Advanced driver assistance systems (ADAS), panoramic sunroofs, and connected car technology have become Mahindra signatures, forcing competitors to upgrade their offerings.

The momentum shows no signs of slowing, with Mahindra maintaining the #2 position in SUV volume market share while commanding premium pricing that drives superior revenue share. The company's ability to maintain a 10% PBIT margin in its auto business (excluding e-SUVs) while gaining market share demonstrates strong pricing power and operational efficiency. This performance is particularly notable given the competitive intensity in the SUV segment, with virtually every manufacturer now offering multiple SUV models.