Mahindra Bets on SUV Momentum in FY27, Tractor Growth to Stay Modest

Mahindra & Mahindra expects its SUV business volume to sustain momentum into FY27 even as growth in the farm sector is likely to remain moderate, reflecting the cyclical nature of rural demand.

While speaking to media after announcing the company’s FY26 results, M&M’s Executive Director & CEO for Auto and Farm Sector Rajesh Jejurikar said M&M is “aiming for mid to high teens growth” in its SUV portfolio, while the tractor industry is expected to grow in “mid-single digits”. 

The divergence in outlook underscores the different demand drivers across the two sectors.

Mahindra’s SUV business, which remains its primary growth engine, ended FY26 with a 25.3% revenue market share, retaining its leadership position. “We continue to be the number one in SUV revenue market share,” Jejurikar said. 

To support future growth, the company is scaling up production capacity in phases. “By the first half of FY27, we will be at about 68,000 units of operational capacity,” he said. Jejurikar also flagged supply-side constraints in parts of the business. “In LCVs, the volume share movement in Q4 was primarily on account of supply situation,” he said, even as the company maintained its revenue market share. 

EVs are emerging as an additional lever, with M&M seeing good traction in its electric SUV portfolio. The company said it has sold around 55,000 EVs cumulatively since launch.

On the farm equipment side, while tractor industry growth is expected to be more measured, M&M is looking to sustain momentum through operational discipline and a sharper focus on its core markets. “This is a business which is cyclical, but we manage our margins within a band,” Jejurikar said. The company has also taken steps to address challenges in its international farm business, including exits from certain markets.

“With these changes, we see a path to profitability,” he said. The company cautioned that the outlook remains subject to geopolitical developments as external risks could influence demand and supply dynamics.