Mahindra eyes EV mix of 13–17% by March 2027 to meet CAFE norms

Mahindra & Mahindra expects to meet upcoming fuel efficiency regulations by steadily increasing the share of electric vehicles in its SUV portfolio, aligning its product mix with evolving CAFE (Corporate Average Fuel Efficiency) requirements.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), Mahindra and Mahindra said that the company is targeting EV penetration of 13–17% in its passenger vehicle portfolio by March 2027, based on current demand trends and planned product rollouts. “We need to be somewhere between 18–20% over a five-year period,” Jejurikar added.

Mahindra’s EV mix has already been moving up, rising from around 9.5% to over 11% in recent months, supported by traction in its electric SUV portfolio. “We were already at around 9.5%… the last two months have been 11% plus. So we should comfortably be able to meet the requirements,” Jejurikar said.

In volume terms, the company reported around 16,600 electric vehicles sold in the March quarter, indicating early scale-up in its EV portfolio.

Mahindra clarified that the EV mix is calculated within its passenger vehicle portfolio, which is entirely SUV-led, making electric SUVs central to its compliance strategy. “It is the sale of electric vehicles as a part of our passenger vehicle portfolio, which happens to be only SUVs,” Jejurikar said.

The company also indicated that regulatory requirements are being factored into capex and product planning, with EV penetration targets built into investment decisions. “The good thing about the capex is now it’s in blocks… it connects the need for EV penetration with our portfolio,” Jejurikar said.