FTAs A ‘Big Opportunity’ For Mahindra As Export Plans Gather Pace, Says Mgmt

Mahindra & Mahindra Ltd expects recently signed free trade agreements to create export and growth opportunities for the group, even as it sees limited downside from increased imports into India.

Group CEO and Managing Director Anish Shah said the new trade pacts, particularly with Europe, would open up a larger addressable market for Indian manufacturers and support the broader domestic auto ecosystem.

“One word, opportunity,” Shah said during a post-earnings media briefing. He said concerns about European carmakers shipping vehicles into India at lower prices were overstated, given existing manufacturing footprints and cost structures.

“There are various European models in India today. That OEM cannot make them in Europe, pay shipping, carry inventory costs, and still sell in India cheaper than what they already have here,” he said. “So it does not impact us from a comparative standpoint.”

Shah said the government had struck a balance between opening the market and protecting domestic manufacturing. While the trade deals would allow more imports into India, they were structured to ensure global automakers continue producing locally.

“We want more manufacturers to set up plants in India. That creates scale, builds the ecosystem, and makes us more competitive,” he said, adding that the agreement could enable automakers to expand exports to Europe over time at zero duty.

Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said the EU pact would support Mahindra’s longer-term export strategy as more models are developed in left-hand-drive configurations.

“The EU trade deal will open up a lot of opportunities as we look at taking Indian vehicles to Europe,” Jejurikar said. “We do not yet have many of our new models in left-hand drive, so this is not something we can leverage immediately. But over the next couple of years, many mainstream models will come in left-hand drive by 2028.”

He added that Mahindra’s upcoming lifestyle pickup portfolio, slated for launch in 2027, could also have strong export potential, particularly in developed markets.

Mahindra reported strong vehicle sales growth in the December quarter, with total volumes rising 23% year-on-year to 3,02,238 units. The overall number includes 35,794 units sold by Mahindra Last Mile Mobility and 11,751 battery-electric vehicles sold by Mahindra Electric Automobile Ltd in the quarter.

In Q3, the automaker’s exports stood at around 12,000 units, as it continued to build its presence in overseas markets, even as it prepares for a larger export push once new trade arrangements take effect.

Over the last few months, India has announced multiple trade agreements, including pacts with the UK, the US, and Europe. While electric vehicles have largely been kept out of the tariff concessions, the deals aim to lower duties on select vehicle categories, components, and related sectors over time.

Industry executives say these agreements could help Indian automakers expand exports to developed markets while also improving supply-chain competitiveness through lower component duties and better access to global markets.

Shah said the agreements were carefully structured to ensure India benefits. The deals could also encourage global automakers to increase local production rather than shift manufacturing out of India.

“The opportunity comes from the ability to sell more into Europe at zero duty. That is meaningful and something we will take advantage of,” he said.

US tractor business

Mahindra also expects the easing of tariff disparities in the US to support a recovery in its tractor business there.

Jejurikar said the company had faced a challenging period over the past several months due to a sharp rise in tariffs on Indian tractor imports to the US. Mahindra had held back shipments when duties were as high as 50%, supplying only what was necessary to maintain market presence.

“We were hoping for a resolution, which fortunately has now happened,” he said. With tariffs now expected to align closer to those faced by competitors, Mahindra plans to release inventory held in US bonded warehouses into the market.

“With the 18% tariff, we are now in the same ballpark as other countries,” Jejurikar said. He said Mahindra’s OJA tractor platform has received strong feedback in the US, particularly in the sub-20 horsepower segment, where the company holds about 9–10% market share. Mahindra remains the number-three player in North America in the sub-100 horsepower category and expects the market to stabilise as tariff clarity improves.

Overall, management said the stabilisation of trade arrangements would help rebuild volumes and support growth in an important overseas market.

With new trade deals opening export avenues, product pipelines expanding, and tariff conditions improving in key markets, Mahindra expects its global growth strategy to gain momentum over the next few years.